Netflix, Inc. (NASDAQ:NFLX) shift in sentiment that has come on concerns about growth

Netflix, Inc. (NASDAQ:NFLX) shift in sentiment that has come on concerns about growth

Netflix, Inc. (NASDAQ:NFLX) shift in sentiment that has come on concerns about growth

Netflix, Inc. shares closed down 5% yesterday on about 21 million shares traded. The streaming giant saw losses as tech stocks sank on Monday. It has been the worst month for tech stocks in the last ten years. “There’s been a shift in sentiment that has come on concerns about growth” since earnings from Amazon and Alphabet last week, said Ron Josey, managing director and senior analyst covering internet and digital media for JMP Securities. “Amazon warned on growth, Google did, and of course last quarter, Facebook dived on decelerating growth. I think the sell-off is anticipating there could be more slowing when it reports.” Traders may also have been reacting to the fact that Apple will roll out its new global streaming TV service by mid-2019.

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 345.19.

The projected upper bound is: 318.99.

The projected lower bound is: 250.95.

The projected closing price is: 284.97.

Candlesticks

A white body occurred (because prices closed higher 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 18.8763. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 32.84. 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 50 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 -155.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 12 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 18 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed up 0.970 at 285.810. Volume was 92% above average (neutral) and Bollinger Bands were 58% wider than normal.

Open High Low Close Volume___
275.570 290.525 271.209 285.810 23,685,702

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

Moving Averages: 10-period 50-period 200-period
Close: 319.20 350.48 332.93
Volatility: 83 64 54
Volume: 19,718,052 12,350,686 11,438,000

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 14.2% 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 15 periods.

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