Netflix, Inc. (NASDAQ:NFLX) has signed a multi-year deal with television writer-producers, David Benioff and D.B. Weiss, the names behind HBO’s popular show Game of Thrones

Netflix, Inc. (NASDAQ:NFLX) has signed a multi-year deal with television writer-producers, David Benioff and D.B. Weiss, the names behind HBO’s popular show Game of Thrones

Netflix, Inc. (NASDAQ:NFLX) has signed a multi-year deal with television writer-producers, David Benioff and D.B. Weiss, the names behind HBO’s popular show Game of Thrones

Netflix NFLX has signed a multi-year deal with television writer-producers, David Benioff and D.B. Weiss, the names behind HBO’s popular show Game of Thrones. Per MarketWatch report, the deal, worth $200 million, will see the creators coming up with movies and series exclusively for the streaming giant.

Notably, the duo has also signed a contract with Disney DIS to write and produce a Star Wars movie trilogy, the first of which is scheduled to release in 2022.

The collaboration with Benioff and Weiss is expected to provide an impetus to Netflix’s original content expansion strategy, which has been its key catalyst. Previously, the company signed similar contracts with Ryan Murphy ($300 million deal) and Shonda Rhimes ($100 million deal) to produce original content.

These additions are expected to help Netflix maintain its dominant market share in the streaming space, which is becoming increasingly competitive due to the entrance of Disney+, Apple TV+ and others.

Netflix’s focus on expanding its original content portfolio, as indicated by the recent hiring, is a major growth driver. We believe its expanding content portfolio is likely to aid subscriber retention in the near term. Moreover, content strength, particularly regional, will boost its international user base.

Technical Indicators

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 339.12.

The projected upper bound is: 334.61.

The projected lower bound is: 285.75.

The projected closing price is: 310.18.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 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 72.6435. 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 38.11. 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 13 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 -71. This is not a topping or bottoming area. 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 20 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed up 1.900 at 310.830. Volume was 100% below average (consolidating) and Bollinger Bands were 39% wider than normal.

Open     High      Low     Close     Volume___
305.460 312.890 303.240 310.830 167
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 314.49 346.91 335.07
Volatility: 37 46 52
Volume: 6,058,142 7,120,722 9,276,322

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 7.2% below its 200-period moving average and is in an downward trend. Volatility is high 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 17 periods.

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