Can NFLX rebound from the down turn after earnings?
Updated
NFLX started a good trend up about June 25 and then pulled back in the day after the
earnings report. Although the earnings beat expectations, price continued to drop in
a VWAP breakdown shown here on a 2 hr chart. Over the 2 days that followed, price
has continued down at a slower rate and candle ranges are diminished. Importantly,
the zero=lag MACD shows a line cross under the histogram which has changed from
red /negative to green/positive. The lines have inflected upward. I see this as demonstrative
of bullish divergence and predictive of a reversal.
Overall, I see NFLX rebounding with a potential 15% upside. My target is 480 in consideration
of the swing high on July 18th with a stop loss of 415 the swing low of late June.
earnings report. Although the earnings beat expectations, price continued to drop in
a VWAP breakdown shown here on a 2 hr chart. Over the 2 days that followed, price
has continued down at a slower rate and candle ranges are diminished. Importantly,
the zero=lag MACD shows a line cross under the histogram which has changed from
red /negative to green/positive. The lines have inflected upward. I see this as demonstrative
of bullish divergence and predictive of a reversal.
Overall, I see NFLX rebounding with a potential 15% upside. My target is 480 in consideration
of the swing high on July 18th with a stop loss of 415 the swing low of late June.
Note
I have not shown the mass index indicator in an effort to avoid chart clutter. However the mass index crescendoed over 28 and dropped below the triggerlevel of 26.5 and so has given a fairly reliable reversal signal.
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