Netflix, Inc. (NASDAQ:NFLX) and other ‘stay at home’ companies benefit from coronavirus

Netflix, Inc. (NASDAQ:NFLX) and other ‘stay at home’ companies benefit from coronavirus

Netflix, Inc. (NASDAQ:NFLX) and other ‘stay at home’ companies benefit from coronavirus

According to some economics analysts, companies like Netflix, Hulu, and others that provide in-home services are best positioned to withstand potential financial hardship due to the widening coronavirus outbreak.

Netflix “is an obvious beneficiary if consumers stay home due to coronavirus (COVID-19 virus) concerns, and this has been reflected in considerable stock price outperformance this week,” said BMO Capital Market analyst Dan Salmon. While the S&P 500 index has plunged 8.3% this week amid the worst sell-off in nearly nine years Netflix stock has been up 0.8% for the week.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 392.35.

The projected lower bound is: 348.30.

The projected closing price is: 370.33.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 47.4624. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.58. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 5 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -101.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed down -2.680 at 369.030. Volume was 71% above average (neutral) and Bollinger Bands were 3% wider than normal.

Open     High      Low     Close     Volume___
364.210 376.770 356.800 369.030 11,178,572
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 376.92 350.03 322.95
Volatility: 43 41 40
Volume: 6,635,314 6,995,264 7,203,561

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NETFLIX INC is currently 14.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into NFLX.O (mildly bullish). Our trend forecasting oscillators are currently bullish on NFLX.O and have had this outlook for the last 94 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.