Netflix, Inc. (NASDAQ:NFLX) Back in the Driver’s Seat
Shares finished at $364.70, up 5% even as all three major indices ended up in negative territory. While the stock price is still below the 52-week high of $423.21 established over the summer, shares have gained more than 70% in 2018 to date.
In its earnings release, the company reported 137 million global subscribers. In the September quarter, it said it added 7 million, exceeding its conservative forecast for 5 million net additions. The tally rose a bit more than 1 million in the U.S., with the remaining 6 million new subscribers signing up internationally. Earnings of 89 cents a share blew past analysts’ consensus estimate of 68 cents. Streaming revenue surged 36%, reaching nearly $4 billion, in line with Wall Street’s expectations.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 354.21.
The projected upper bound is: 394.28.
The projected lower bound is: 335.63.
The projected closing price is: 364.96.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 66.1022. This is not an overbought or oversold reading. The last signal was a buy 3 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 53.98. 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 buy 41 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 48. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.
Rex Takasugi – TD Profile
NETFLIX INC closed up 18.300 at 364.700. Volume was 176% above average (trending) and Bollinger Bands were 15% wider than normal.
Open High Low Close Volume___
378.330 380.000 356.500 364.700 32,610,948
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 345.06 354.23 328.37
Volatility: 82 54 51
Volume: 15,584,613 10,453,941 10,958,586
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.
NETFLIX INC gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NETFLIX INC is currently 11.1% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of NFLX.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on NFLX.O and have had this outlook for the last 6 periods.