Netflix is Preparing to Stream
- Posted by Greg Harmon
- on November 15th, 2012
Netflix, $NFLX, has exhibited crazy price action over the last year. Loved, hated and now loved again. On the most recent joy ride higher it is now breaking an ascending triangle into resistance at 80. But if you want to be precise, this could be a rising wedge, signalling a more cautious tone. Either way the stock seems to be setting up for a crazy move. Over 81 it has a Measured Move higher to 100 with resistance at 85 and 90 along the way. Below 78 it looks to easily retest 70 or 65. The Relative Strength Index (RSI) is bullish and supports the break higher, while the Moving
Average Convergence Divergence indicator (MACD) is positive but very near a diverging bearish cross to negative. From a long term perspective the 3-box reversal Point and Figure chart sides with the upside break, but will also continue to do so until it falls under 75. The accumulation/distribution indicator has been rising but is also confusing the picture as it is now moving lower. What to do? Set alerts for the break either way to be prepared to play this volatile name.
Join the Dragonfly Capital Views Premium Membership
This analysis and these trade ideas are typical of the daily earnings piece of the Premium Service, which is complemented by weekly stock ideas, macro trend analysis and access for personalized analysis. Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Re-Emergence of the Emerging Market ETF
- Turning Goldman Sachs into Gold in Sacks
- Premium Earnings 8-26-14
- S&P 2000, DAX 10,000, Dow 17000 and Andre 3000
- The Longer Term View on Johnson & Johnson
- Premium Earnings 8-25-14
- Top Trade Ideas for the Week of August 25, 2014: Bonus Idea
- Top Trade Ideas for the Week of August 25, 2014: The Rest
- Top Trade Ideas for the Week of August 25, 2014: The Rest Premium
- Top Trade Ideas for the Week of August 25, 2014: The Best