Netflix, Inc. (NASDAQ:NFLX) focusing on India

Netflix, Inc. (NASDAQ:NFLX) focusing on India

Netflix, Inc. (NASDAQ:NFLX) focusing on India

Netflix (NASDAQ:NFLX) is now in nearly half of all U.S. households. That means it’s depending on international markets for the majority of its subscriber additions — including India.

With a population of 1.4 billion, India is the key to the streaming giant’s next 100 million subscribers, Netflix CEO Reed Hastings said during a visit to the country earlier this year. However, India is a tough market, and these 100 million new subscribers won’t come overnight, Netflix CFO David Wells warned investors during the company’s latest earnings call covering the third quarter of 2018.

In its latest quarter, Netflix added 5.9 million subscribers internationally compared to just 1.1 million subscribers domestically. The company is on fire overseas because it has refused to take shortcuts with content in other countries. Rather than relying on dubbing, it’s been funding original local-language content in 17 different countries.

Even before launching its first original series in India, Netflix had been growing at a steady rate in the country since launching in 2016. However, releasing local titles like Sacred Games and Ghoul in 2018 has really pushed Netflix to a new level in India, Netflix Chief Content Officer Ted Sarandos said on the third quarter earnings call. Following the launch of its local programs in India, Netflix’s viewer engagement saw a healthy boost.

And that explains why Netflix believes it can hit 100 million subscribers in India despite the intense competition from Amazon (NASDAQ:AMZN) Video and India-based Hotstar, which is controlled by 21st-Century Fox. Netflix won’t break out a specific figure for its subscribers in India; however, the organization is estimated to have about half a million Indian subscribers, according to a recent report from IHS Markit.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 348.65.

The projected upper bound is: 318.57.

The projected lower bound is: 249.83.

The projected closing price is: 284.20.

Candlesticks

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.

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 18.1337. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 11 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 32.40. 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 49 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 -176.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 11 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 17 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed down -14.990 at 284.840. Volume was 100% below average (consolidating) and Bollinger Bands were 54% wider than normal.

Open High Low Close Volume___
305.260 307.890 275.400 284.840 10,186

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 325.26 351.32 332.61
Volatility: 89 65 54
Volume: 17,196,258 11,715,021 11,278,709

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 14.4% below 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 14 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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