Netflix is off 23% YTD, and traders are betting it is about to dive deeper.
Options volume last week grew increasingly Bearish, indicating the negative sentiment on Wall Street.
I am seeing a negative technical setup. Next support is 80.57 and none under that mark. There really is no valuation support for NFLX.
The stocks recent performance has formed a head-and-shoulders continuation pattern aka a Bullish-to-Bearish reversal which implies a move lower.
There are 2 Key marks to watch: 80.57 and 85, the former where the stock traded on it 8 February 2016 low.
Key factors driving the Bearish sentiment are increasing competition and subscriber growth worries.
If they miss on the subscription numbers again when they report in July, expect NFLX is going much lower.
Last week Netflix posted Q-1 EPS of 0.06 and revenue of $1.96-B. Despite the earnings beat, shares fell sharply on weak subscriber guidance.
Shares were in the Green Monday, and the stock is down 35% from its all-time high.
|HeffX-LTN Analysis for NFLX:||Overall||Short||Intermediate||Long|
|Neutral (-0.16)||Neutral (-0.24)||Bearish (-0.29)||Neutral (0.06)|
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