Netflix Inc. (NFLX/NASD): general analysis
02 April 2018, 11:47
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 284.90 |
| Take Profit | 275.00, 265.00, 260.00 |
| Stop Loss | 295.00 |
| Key Levels | 250.00, 270.00, 285.00, 300.00, 315.00, 334.00 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 300.10 |
| Take Profit | 315.00, 325.00 |
| Stop Loss | 290.00 |
| Key Levels | 250.00, 270.00, 285.00, 300.00, 315.00, 334.00 |
Current trend
Since the middle of March, Netflix stocks have lost more than 11%, correlating with FANG (Facebook Inc., Amazon.com Inc., Netflix Inc. and Alphabet Inc.) stocks due to the scandal with Facebook Inc. about the users’ data confidentiality. Despite the fall, the growth of the instrument has exceeded 54% since the beginning of the year. On April 16, the company will publish the financial results of the last quarter.
During the last week, Netflix decreased by 3.70% against the fall of S&P 500 index by 0.06%.
Support and resistance
Last week the stocks were in the correction. Now the technical picture is mixed. The price is consolidating. The instrument is testing the local support and resistance levels at 285.00 and 300.00 correspondingly. The stocks can decrease further. MACD histogram is in the negative zone and decreasing, which reflects the strength of sellers. It is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests that the shares are overpriced.
Support levels: 285.00, 270.00, 250.00.
Resistance levels: 300.00, 315.00, 334.00.
Trading tips
Short positions can be opened after the price is set below the level of 285.00. The closing of the profitable positions is possible at the levels of 275.00, 265.00 and 260.00. Stop loss is 295.00.
Long positions can be opened after the price is set above the level of 300.00 with the targets at 315.00–325.00. Stop loss is 290.00.
Implementation period: 3 days.
Since the middle of March, Netflix stocks have lost more than 11%, correlating with FANG (Facebook Inc., Amazon.com Inc., Netflix Inc. and Alphabet Inc.) stocks due to the scandal with Facebook Inc. about the users’ data confidentiality. Despite the fall, the growth of the instrument has exceeded 54% since the beginning of the year. On April 16, the company will publish the financial results of the last quarter.
During the last week, Netflix decreased by 3.70% against the fall of S&P 500 index by 0.06%.
Support and resistance
Last week the stocks were in the correction. Now the technical picture is mixed. The price is consolidating. The instrument is testing the local support and resistance levels at 285.00 and 300.00 correspondingly. The stocks can decrease further. MACD histogram is in the negative zone and decreasing, which reflects the strength of sellers. It is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests that the shares are overpriced.
Support levels: 285.00, 270.00, 250.00.
Resistance levels: 300.00, 315.00, 334.00.
Trading tips
Short positions can be opened after the price is set below the level of 285.00. The closing of the profitable positions is possible at the levels of 275.00, 265.00 and 260.00. Stop loss is 295.00.
Long positions can be opened after the price is set above the level of 300.00 with the targets at 315.00–325.00. Stop loss is 290.00.
Implementation period: 3 days.
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