Netflix (Nasdaq: NFLX) dated 6 Aug 2021
Since the start of the global vaccination drive in December 2020, Netflix’s share price movement had been uneventfully trading within the range of $500-$600. After the consolidation, Netflix looks set up for the next up move as indicated by the 3 price multiples cycle index we used. As can be seen from the monthly chart above, every time these 3 lines fall below the Buy Zone, it offers an opportunity to buy into this market leader for its next leg of up move. See Chart 1.
On a short-term basis, we see a number of support points (see Chart 2), from 250-days Moving Average, Symmetrical Triangle consolidation formation and Stochastic turning up from oversold region. Short-term support at US$500, followed by $475. Resistance at US$560. Traders looking for entry signal can either:
A. Buy when price broke out above resistance of US$560, or
B. Buy nearer to the Symmetrical Triangle support of US$490-$500 region.
As usual, this writeup was broadcast to Clients on 6 Aug 2021 but posted here only on 1 Sep 2021. Netflix has gained 9.5% since date of broadcast to 30 Aug closing.
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