Chart of the Week: Netflix
This week we’re going to be profiling Netflix; NFLX. It came out with earnings last week, and they were pretty strong, and the stock is doing pretty well still post-earnings.
You can see the stock has put in a nice series of higher lows here, and we do have a channel here. So you might say, “Well, don’t we want to wait til it breaks out of the channel?” And usually the answer to the question is yes. But the stock has made a move in about five sessions to the top end of that channel. And if we pull back on that and make a move back up above that channel, we have a higher low in place, and we could make a nice series of higher highs and higher lows all the way up. We’ve had good volume, too, on the past five sessions.
MACD has turned up as well. Just before earnings came out, it had a bullish crossover.
Chaikin Money Flow is also really strong.
Take a look at the accumulation distribution oscillator at the bottom here. It has made a really bold move here. It’s above the zero line; the CMF is not quite above there yet. Accumulation distribution means that more big institutions are buying the stock when you have these big volume moves over here.
Price action is good, volume is strong, and we could see the stock making a move maybe back up to these July highs about $545-548 over the next couple weeks.
That’s Netflix. Thanks for watching everyone, and I’ll see you next time.
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