Netflix, Inc. (NASDAQ:NFLX) junk debt binge leaves it vulnerable to coronavirus market shocks

Netflix, Inc. (NASDAQ:NFLX) junk debt binge leaves it vulnerable to coronavirus market shocks

Netflix, Inc. (NASDAQ:NFLX) junk debt binge leaves it vulnerable to coronavirus market shocks

n January, Netflix released a documentary miniseries titled Pandemic. The programme, which details doctors’ efforts to battle the flu and warns that the world is not prepared for future outbreaks, looks eerily prescient two months later.

The diagnosis for the world’s biggest streaming service, however, remains unclear. The prospect of weeks or months spent indoors, and nights spent binge watching on sofas, means Netflix’s shares have held steady this year, even as the wider stock market officially enters bear territory.

But at the same time, the market shock created by coronavirus means Netflix’s own binge could be challenged.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 368.66.

The projected lower bound is: 304.44.

The projected closing price is: 336.55.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 26.3938. This is not an overbought or oversold reading. The last signal was a buy 12 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 42.48. 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 15 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 -159.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 9 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 14 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed up 21.045 at 336.295. Volume was 42% above average (neutral) and Bollinger Bands were 76% wider than normal.

Open     High      Low     Close     Volume___
330.510 336.420 307.390 336.295 9,458,197
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 358.74 356.17 323.18
Volatility: 99 59 46
Volume: 8,034,248 7,285,016 7,344,164

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 4.1% 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 4 periods.

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