NFLX: Double Bottom Base to study for Future trades

This is used in conjunction with the Stocks Over Coffee Podcast on Technical Education Double Bottom Bases

Netflix is a familiar name. This is a brand that went from renting out DVDs to now producing their own TV shows and movies. This is a company that has just kept on innovating and innovating. Well how do we how that this company is potentially going to be one of the breakout stars? Two ways, the technical formation and the fundamentals specifically the earnings. Above on the Chart is how to spot a double bottom base and below are the historical Earnings.

EPS Quarterly
Dec09: +37%
Mar10: +59%
Jun10: +48%
Sep10: +35%

Looking at the chart above you see the different labels that form the double bottom from A to D until if finally confirmed the breakout on high volume and price.

Thank you for reading the write up and be sure to tune in to Stocks Over Coffee for more insights!