Netflix, Inc. (NASDAQ:NFLX) Breakout May Boost Stock 11% Short Term

Netflix, Inc. (NASDAQ:NFLX) Breakout May Boost Stock 11% Short Term

Netflix, Inc. (NASDAQ:NFLX) Breakout May Boost Stock 11% Short Term

Traders sold shares of Netflix, Inc. (NASDAQ:NFLX) on strength during trading hours on Thursday following insider selling activity. $426.85 million flowed into the stock on the tick-up and $510.53 million flowed out of the stock on the tick-down, for a money net flow of $83.68 million out of the stock.

Of all stocks tracked, Netflix had the 6th highest net out-flow for the day. Netflix traded up $1.75 for the day and closed at $349.36Specifically, insider Theodore A. Sarandos sold 111,391 shares of Netflix stock in a transaction on Monday, July 23rd. The shares were sold at an average price of $360.00, for a total value of $40,100,760.00. Following the transaction, the insider now directly owns 16,065 shares of the company’s stock, valued at approximately $5,783,400.

A number of equities analysts have recently commented on NFLX shares. Cowen reaffirmed a “buy” rating and issued a $325.00 target price (up from $275.00) on shares of Netflix in a report on Wednesday, April 11th. Monness Crespi & Hardt reaffirmed a “buy” rating and issued a $350.00 target price (up from $300.00) on shares of Netflix in a report on Wednesday, April 11th. Goldman Sachs Group lifted their target price on shares of Netflix from $315.00 to $360.00 and gave the company a “buy” rating in a report on Wednesday, April 11th.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 376.13.

The projected lower bound is: 322.42.

The projected closing price is: 349.28.

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 27 white candles and 23 black candles for a net of 4 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 64.2631. This is not an overbought or oversold reading. The last signal was a buy 5 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 41.34. 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 7 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 -6. This is not a topping or bottoming area. The last signal was a buy 4 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 buy 1 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed up 1.750 at 349.360. Volume was 56% below average (consolidating) and Bollinger Bands were 13% wider than normal.

Open High Low Close Volume___
347.960 352.439 345.816 349.360 4,820,313

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 345.33 377.12 289.48
Volatility: 42 45 45
Volume: 9,145,754 12,132,062 9,764,835

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 20.7% above its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of NFLX.O (mildly bearish). Our trend forecasting oscillators are currently bearish on NFLX.O and have had this outlook for the last 16 periods.

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