Netflix, Inc. (NASDAQ:NFLX) taking on billions in debt

Netflix, Inc. (NASDAQ:NFLX) taking on billions in debt

Netflix, Inc. (NASDAQ:NFLX) taking on billions in debt

Netflix Inc. issued $2 billion of 10½-year junk bonds on Tuesday in a two-part deal that included a euro-denominated tranche, as it continues to raise the funds needed to produce its original content.

The company NFLX, +1.10% was expected to benefit in the debt sale from positive sentiment stemming from last week’s strong third-quarter earnings beat and a recent credit upgrade from S&PGlobal, as it tapped the capital markets for the second time this year, according to CreditSights analysts.

The company sold 1.1 billion euros of 4.625% notes due 2029, and another $800 million of 6.375% notes due 2029.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 363.80.

The projected lower bound is: 302.20.

The projected closing price is: 333.00.

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 19 white candles and 31 black candles for a net of 12 black candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with NETFLIX INC). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 17.8052. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 7 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 43.14. 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 45 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 -86. This is not a topping or bottoming area. The last signal was a buy 7 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 13 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed up 3.620 at 333.160. Volume was 24% above average (neutral) and Bollinger Bands were 26% wider than normal.

Open High Low Close Volume___
318.000 336.580 316.770 333.160 14,907,326

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

Moving Averages: 10-period 50-period 200-period
Close: 337.29 353.39 330.92
Volatility: 85 56 51
Volume: 17,930,110 11,368,519 11,158,328

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 0.7% above 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 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 10 periods.

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