Netflix, Inc. (NASDAQ:NFLX) Will Remain King of the Streaming Jungle

Netflix, Inc. (NASDAQ:NFLX) Will Remain King of the Streaming Jungle

Netflix, Inc. (NASDAQ:NFLX) Will Remain King of the Streaming Jungle

I recall nearly 17 years ago when my child was still a toddler and regular trips to Blockbuster were the norm for renting videotapes and DVDs.

At the same time, the upstart Netflix, Inc.(NASDAQ:NFLX), was challenging the status quo in the way movies were rented. The alternative offered by Netflix back then was the ability to order movies online and have them delivered to your home.

My thinking at the time was: “Why would I want to give up the regular visits with my kid to Blockbuster and the excitement of finding the perfect movie?”

Back then, Netflix stock was trading at the $1.00 level while Blockbuster was hovering above $15.00.

Later, as Internet speeds warped higher and bandwidth increased, Netflix jumped on board to another way of viewing movies—online—and thus was born the streaming age.

If you bought NFLX stock at $1.00 and are still holding it, congratulations! A $10,000 investment at that price would be worth about $3.5 million today.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 385.31.

The projected lower bound is: 336.62.

The projected closing price is: 360.96.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 50.4913. This is not an overbought or oversold reading. The last signal was a buy 4 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 56.06. 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 34 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 -39. 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 21 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed up 9.260 at 358.860. Volume was 54% below average (consolidating) and Bollinger Bands were 70% narrower than normal.

Open High Low Close Volume___
352.000 358.980 350.030 358.860 5,387,285

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

Moving Averages: 10-period 50-period 200-period
Close: 356.93 337.23 339.84
Volatility: 27 48 56
Volume: 6,036,194 10,703,090 11,709,450

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 gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NETFLIX INC is currently 5.6% above its 200-period moving average and is in an downward trend. Volatility is relatively normal 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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