Netflix, Inc. (NASDAQ:NFLX) longest losing streak for Netflix shares since March 2014

Netflix, Inc. (NASDAQ:NFLX) longest losing streak for Netflix shares since March 2014

Netflix, Inc. (NASDAQ:NFLX) longest losing streak for Netflix shares since March 2014

Wall Street is growing worried that Netflix’s best days could be behind it.Netflix shares were up about 4% Wednesday even as the broader market was mixed.

But Netflix(NFLX) stock had fallen for nine straight days — a stretch that included a 10% drop after the company stunned Wall Street by reporting a much smaller increase in subscribers than expected.

That’s the longest losing streak for Netflix shares since March 2014, when the stock fell for 11 consecutive days.

To put that into context, the Netflix show “Orange is the New Black” — one of its first original hits — was still a few months away from premiering its second season the last time Netflix had a losing streak this long.

The seventh (and final) season of “Orange is the New Black” will drop this Friday.

Just as Netflix helped lead to the demise of Blockbuster Video, other media and tech companies could one day kill Netflix.Investors’ fears of Netflix’s eventual demise may be a tad overblown.

However, the company could fall a lot further when you consider that the stock is still up 20% this year even after its recent slide. And shares trade at a nosebleed valuation of nearly 100 times 2019 earnings estimates.

So a little caution is probably advisable.”We think concerns around impending competitive launches will keep a bit of a lid on shares at least until we see the effect of competing services early next year,” said Instinet analyst Mark Kelley in a report after Netflix’s latest earnings.

His price target is $310 a share, which is slightly lower than the current price. In other words, Netflix could tread water for the foreseeable future.

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 346.23.

The projected upper bound is: 341.19.

The projected lower bound is: 293.60.

The projected closing price is: 317.39.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 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 12.2654. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 30.90. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -95. This is not a topping or bottoming area. The last signal was a buy 0 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 7 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed up 10.640 at 317.940. Volume was 70% above average (neutral) and Bollinger Bands were 184% wider than normal.

Open     High      Low     Close     Volume___
310.510 319.990 307.250 317.940 11,961,818
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 342.39 355.76 336.52
Volatility: 65 44 55
Volume: 12,488,727 6,692,643 9,906,043

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 5.5% 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 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 4 periods.

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