Netflix, Inc. (NASDAQ:NFLX) will announce its earnings results after the market closes on Tuesday
Netflix, one of the market’s most successful stocks over the past decade, will announce its earnings results after the market closes on Tuesday. Stakes are high for the streaming video giant, which missed subscriber growth estimates by a wide margin last quarter. “We had a strong but not stellar Q2,” CEO Reed Hastings said in July after the company added 5.2 million new members to match the prior-year period, but came in below executives’ forecast of 6.2 million.
Management’s third-quarter prediction calls for 5 million new streamers to have signed up in the period, which would mark a slowdown from the prior year’s 5.3 million boost. Beyond that, investors are expecting to see significant revenue and profitability gains as Netflix benefits from higher plan prices and maturing international markets. Its cash flow, on the other hand, should remain sharply negative due to the company’s focus on building on its popular, but expensive, portfolio of exclusive and original content.
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 355.17.
The projected upper bound is: 367.26.
The projected lower bound is: 311.66.
The projected closing price is: 339.46.
A black body occurred (because prices closed lower 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.
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).
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 20.9311. This is not an overbought or oversold reading. The last signal was a buy 0 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 42.39. 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 38 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 -97. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.
Rex Takasugi – TD Profile
NETFLIX INC closed up 18.460 at 339.560. Volume was 32% above average (neutral) and Bollinger Bands were 9% wider than normal.
Open High Low Close Volume___
339.570 341.300 328.900 339.560 14,870,830
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 354.20 354.26 326.08
Volatility: 70 51 50
Volume: 11,467,769 9,674,642 10,769,984
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.
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 3 periods.