Netflix: Sizing Up Levels After Earnings
Netflix rallied into quarterly results last week, only to fall on weak revenue. Today’s chart considers some potential points for dip-buyers looking to add the streaming giant.
First you have the rally that began on May 18 after strong demand for its ads in an “upfront presentation” to Madison Avenue. Retracing half the move would bring the shares back to roughly $412.50.
Next, that level is near the low on June 27. Traders may look for that price area to be retested as support.
Third, the 50-day simple moving average (SMA) is rising into the same zone.
Combined, those three points could represent triple convergence.
Stochastics are also oversold. That isn’t bullish per se, but it may attract dip buyers given NFLX’s recent surge.
Finally, you have tomorrow’s Federal Reserve meeting. Stocks often freeze before such events and then swing sharply. Will such volatility bring prices back toward $413 zone, followed by continuation to the upside?
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First you have the rally that began on May 18 after strong demand for its ads in an “upfront presentation” to Madison Avenue. Retracing half the move would bring the shares back to roughly $412.50.
Next, that level is near the low on June 27. Traders may look for that price area to be retested as support.
Third, the 50-day simple moving average (SMA) is rising into the same zone.
Combined, those three points could represent triple convergence.
Stochastics are also oversold. That isn’t bullish per se, but it may attract dip buyers given NFLX’s recent surge.
Finally, you have tomorrow’s Federal Reserve meeting. Stocks often freeze before such events and then swing sharply. Will such volatility bring prices back toward $413 zone, followed by continuation to the upside?
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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