By Daniel
WallStreet.io contributor and analyst. Author of upcoming book on market volatility.
Aug 8, 2016
Watch This! NFLX Shows Traction After Poor Earnings Reviews
Once again, Netflix (NASDAQ:NFLX,) is in its classic knocked-down, get-right-up mode that has characterized the life of this volatile stock. And, at the moment, it looks like NFLX is trending right to the top of its current trading range.
Once again, Netflix (NASDAQ:NFLX,) is in its classic knocked-down, get-right-up mode that has characterized the life of this volatile stock. And, at the moment, it looks like NFLX is trending right to the top of its current trading range.
That range may be defined by support down at $84.50, which was the Q-2 post-earnings intra-day low, and $101.25, the intra-day high that followed the Independence Day weekend.
As for today, NFLX ended the week’s first trading session at $95.11, off by almost 2.0% for the week’s first session. That compared rather poorly to both the Dow and the S&P 500, both handily outperforming NFLX by ending the day close to flat.
Last Friday saw NFLX successfully pierce its 50-day moving average, while Monday’s price action kept the stock above that level, $94.02, as well.
With NFLX remaining something of a darling among traders, the closely-tracked MA often serves as a key point of either resistance or support, depending on the stock’s relative relationship to it.
NFLX current Over/Under is at 101.25/84.50, a big spread. But as is obvious from even a cursory review of the chart, the stock remains extremely volatile.
Today saw NFLX generate a green bullish PayDayCycle bar, which extends the current bullish cycle to 10 days, making it the 2nd longest run of the year.
PayDayCycles are 4-8 day trends in stocks that help people swing trade. To learn more about PayDayCycles make sure to grab the free Swing Trading Class on the right sidebar.
The MACD crossed over to the bulls on July 29, and as we’ve seen with a lot of the more volatile stocks, it serves as a strong signal for a bullish trade. This remains true for this particular crossover of the momentum indicator, and based on both the depth and extended upward sequence of the subsequent bars, the trend remains firmly in place.