There is nothing more fun that kicking back after a long day and watching a movie or show on Netflix. My kids are addicted to their programs, and when I’m traveling for work, I take full advantage of their iPad app. Despite a strong 2015, it looks like there could be trouble ahead.
Netflix Stock Chart (Nasdaq: NFLX)
Momentum has been strong for Netflix so far this year, and the stock is still up more than 100% in 2015. But recent technical activity shows there may be trouble on the horizon. Their relative strength is suspect, and elevated turnover on lower price action may be a sign that the name has more downside to come. Netflix is definitely not performing as a leader in the tech group.
If you study the chart, you’ll see that the MACD looked as if it were going to make a turn higher, but that movement was recently rejected. As a result, momentum indicators turned down. The W pattern was potentially bullish, but that was negated on Monday, September 21. We are bearish on the name, and in the Explosive Options service, we are carrying the Nov 90 put.
Netflix Chart Analysis
Take a deeper dive into the chart action (Nasdaq: NFLX) and learn how to read the technicals and my analysis as I mark up our chart of the week.
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