Netflix Analysis, The Entry into The Gaming Sector Hello everyone, as we all know the market action discounts everything :)
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The market seems to be falling into a small sideways move for the last 10 days that's located between the ranges of 610.13 and 572.07.
NFLX has been doing great for itself, in the last month the stock jumped from 504.75 up to 615.75 that's a 22% increase which is huge and both the long and short-term trends are positive.
NFLX has an average volume of 3244020. This is a good sign as it is always nice to have a liquid stock.
Possible Scenarios for the market :
Scenario 1 :
The market is trading at 599.06 and it's crossed the first resistance located at 595.54 and it looks that it could be headed to the main resistance zone near the 607.23 area
If the market was able to breakout that zone we will be seeing a breakout of that sideways move that could lead the price to a new all-time high at the range of 636.36.
Scenario 2 :
In case the market continues his sideways move, we could see the price drop to the lower end of the channel near the 576.41 level and bounce back up after a battle over control between the Bears and Bulls with the winner most likely to be the Bulls.
The market will probably trade in the channel range for a while before reaching the resistance zone at 607.23 and breaking out of it.
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish sign)
2) The RSI is at 62.54 showing Great strength in the market, IF the RSI drops from here it will Create a divergence with the market.
3) The ADX is at 33.01 Showing that the market is trending with a positive crossover between DI+ (27.21) and DI- (14.41)
Daily Support & Resistance points :
support Resistance
1) 576.16 1) 595.54
2) 568.47 2) 607.23
3) 556.79 3) 614.92
Weekly Support & Resistance points :
support Resistance
1) 573.88 1) 605.12
2) 555.36 2) 617.84
3) 542.64 3) 636.36
Fundamental point of view :
Netflix Completes The Acquisition of Night School........
for those who don't know Netflix has announced that it has completed the acquisition of Night School. The gaming studio is known for developing games and is behind the popular game Oxenfree.
This new project will provide Netflix with a lot of Value now that its steeping into the Gaming sector.
The VP added that Netflix is dedicated to building the creative capabilities and library of Netflix games with Night School. He added that Netflix intends to introduce exclusive games designed for various categories of gamers. The games will be included with its membership, and users will get to enjoy them with no ads or in-app purchases.
NFLX has a Return On Assets of 10.72%. This is amongst the best returns in the industry. The industry average is -3.91%. NFLX outperforms 90% of its industry peers.
NFLX's low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company which could indicate a big increase in the stock price in the near future.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
