Since its powerful earnings inspired surge on Jan. 20, shares of Netflix (NASDAQ:) have been consolidating in a narrowing range. During this phase the stock has remained inside its earnings week range (Jan. 19-Jan. 22). Is an upside breakout brewing?
NFLX built a sloppy yet solid base near its 200-day moving average in March of last year. The 200-day is supporting multi-week lows again this March. The huge gap left behind following NFLX’s big post earnings open ($509) is also providing support.
Netflix reached an extremely high overbought reading (daily MACD) back in mid-July. The stock is well below neutral as the new week begins.
We regard NFLX as a fairly low-risk buy at current levels. On the downside, a close back below $501.00 would violate last week’s low, indicating current consolidation pattern has more to go.
Note: We are long NFLX in some managed accounts.
You can read Gary S. Morrow’s original post here.
Fintech Zoom or anyone involved with Fintech Zoom will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.