Netflix Attempts Historic Breakout
Netflix recovered quickly from its August lows, and now some traders may see potential for a rally to new highs.
The first pattern on today’s chart is the July 17 peak of $678.97. Notice how the streaming-video stock crossed and held that level last week. Has old resistance become new support?
Second, the July 17 candle followed a mixed quarterly report. The stock tried to rally that morning before sellers managed to drive it lower. Getting back above that day may suggest that investors are focused on positive aspects of the report.
Third, MACD was falling at the time, which may additionally explain why the bulls failed. However, the oscillator is now rising. Prices are also above their 8-day exponential moving average. Those signals may reflect bullishness in the shorter term.
Fourth, NFLX is near its previous highs from 2021. As a result, further upside from here may draw longer-term trend followers and talk of a new bull run.
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The first pattern on today’s chart is the July 17 peak of $678.97. Notice how the streaming-video stock crossed and held that level last week. Has old resistance become new support?
Second, the July 17 candle followed a mixed quarterly report. The stock tried to rally that morning before sellers managed to drive it lower. Getting back above that day may suggest that investors are focused on positive aspects of the report.
Third, MACD was falling at the time, which may additionally explain why the bulls failed. However, the oscillator is now rising. Prices are also above their 8-day exponential moving average. Those signals may reflect bullishness in the shorter term.
Fourth, NFLX is near its previous highs from 2021. As a result, further upside from here may draw longer-term trend followers and talk of a new bull run.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more.
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 or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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