Falling Wedge + Bullish RSI convergence on FAANGAlthough I biased bearish for the past year, the markets are clearly oversold and, furthermore, appear to be showing consolidative pattersn.
FAANG index is also showing bullish consolidation.
We have a falling wedge and a strong bullish RSI convergence.
I believe the recent downturn was also an ABC move.
So, in short, although we are down a lot, we have a very bullish outline despite the bearish macro-narrative.
NFLX
$AMD $TSLA $QQQ $NFLX I OptionsSwing WatchlistAMD 1D I AMD is testing support near our trend. We have a bullish divergence on the RSI and earnings coming up. If $70 holds we can see a relief rally into earnings.
TSLA 1D I Attempting to make a higher low on the daily, but still looks bearish below $685. Support at $660 and $625. Resistance near $685 and $710!
QQQ 1D I QQQ is trying to make a higher low. Possible falling wedge pattern on QQQ. Expecting resistance near $290 and support near $265.
NFLX 1D I Netflix has been consolidating right above $160 for almost a month already. It reports earnings on 07/19 and we have a bullish divergence on the RSI!
NETFLİX BULLİSH CAN COME!!!Hello guys,
I wanna share my idea about netflix.I think rise will come after this EMA cutting. Why bullish will come? Let's answer this question.
Reasons of rise possibility:
1)We are on the very strong support.This will affect investor for buy netflix.
2) 5 length EMA can cut 20 length EMA at the future days.
3)We see mismatch between MACD and Chart.(Most important signal in my opinion)
This reasons can affect investors for Buy netflix share.
I show STOP LOSS area with ATR strategy on the chart.
Actually I think, This seems good oppurtunity for Buy netflix share.
NOT İNVESTEMENT ADVİCE THATS ONLY MY OPİNİONS.
Thanks
NFLX - What does this chart tell YOU? This is a weekly NFLX chart with the Fibonacci Channel applied to it dating back to the 2012 timeframe.
You could not have constructed this channel until the top was established so it wouldn't have done you much good on the front side of the move.
HOWEVER ... What this chart confirms to ME is the bottom is in.
WHY?
Look at the beautiful symmetry the chart displays at the respective Fibonacci levels. Remarkable isn't it?
That's enough confirmation to me this stock has seen it's low because one of the key points you need to use to construct the channel is the local low.
If this is not the low the past interaction with the Fibonacci levels would not line up as they do on this chart.
4 biggest declines in history...Here are the 4 largest (over 50% ) pull back in NFLX history. We are "at that range" . Yes, we can go down more, but I will begin my accumulation process here, with buying 5 shares every 2-3 days...
:-)
And I will sell a put for July below the 200 SMA on a monthly chart. :-)
Logarithmic Channel Since IPOSince 2002, Netflix has remained in a constructed bullish channel. With an RSI-based MA to compliment an established bottom, $NFLX has tapped the support of this channel only twice in its public history before racing to new ATHs in a few years.
I believe the risk-to-reward ratio at these prices has significantly improved, allowing those with a long-term view to construct a position more confidently.
$NFLX Long at Montlhy DemandNFLX has found some buying pressure at monthly demand. Being that the market is oversold into the big picture downtrend and we have rallied away, potential upside in many stocks is a great buying opportunity. NFLX closed above the 20 SMA on the Daily and is forming a rounded bottom breakout. Target into the fib discount zone between 216 and 230. Looking for a top target of 230-250 over the next 3 weeks.
NFLX for a bounceNFLX is still oversold after forming a near term bottom. Looking for a bounce to $220-252 range. It's hard to find anything to short in this market with so many stocks oversold and at/ near 52 week lows. Bear markets can have violent spectacular rallies on the way down which is why I am entirely long this week. GL
NFLX-USD Greetings,
Since ATH, the paper has fallen in price by 75% due to loss of Russian subscribers and a general market correction. There were only two such strong corrections in 2004 by 77% and 2011-12 by 80%. Could the decline continue? I think so, with a rebound and a test of support around $90-130, where the 2015-17 accumulation zone is located.
The company predicts this quarter's drop in subscribers could drop another 2 million, from the current 220 million, due to the unstable world situation and higher US subscription costs.
The company's average monthly returns statistically are January, May, August, October, December. And the weakest months are April and July, the current drop in April confirms this statistic, May has every chance to close better on the rebound.
But fundamentally the company is developing, and the number of users of the service will grow worldwide. For private investors it is worth thinking about several entry points, which would reduce the risk and get a better average price for further correction.
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Always use STOP, and do not use a leverage higher than x3.
A trader must always have tomorrow.
Are Nasdaq stocks now reasonably priced?Over the past two years, technology companies have enjoyed explosive growth as investors were upbeat about the prospects for the sector at a time when people relied on technology to stay connected while cooped up in their homes.
Internet firms like Zoom Video Communications (NASDAQ:ZM) were among those to reap substantial gains from the tech boom during the pandemic. Zoom’s stock surged to a record $559 in October 2020 around the time that its platform’s usage became ubiquitous for people working at home and regular users that wanted to connect with friends and families.
The confidence in Zoom and other internet stocks like Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) fueled a herd mentality that propelled the tech-heavy Nasdaq Composite index to an all-time high in November 2020.
But with concerns about high valuations and interest rate hikes that could lower companies’ future earnings, the Nasdaq has been on a freefall for about half a year now, retreating from its November peak of over 16,000 points to an over 18-month low of just under 12,000 points on Wednesday.
Pandemic favorites lose shine
Zoom, the poster child for 2020, is now trading at less than $90 from its October peak of $559. Netflix (NASDAQ:NFLX), another pandemic favorite, has lost 62% over the past year and 69% year-to-date as of Wednesday, trading at less than $190 after touching an all-time high of $690.31 in October 2021.
The drop in Netflix’s shares comes as the company reported its first quarterly loss of subscribers in over a decade. It lost 200,000 subscribers in the first quarter, which the company blamed on people sharing accounts, among other factors.
Billionaire investor Bill Ackman in April sold his entire stake in Netflix, taking $400 million in losses. His firm, Pershing Square Holdings, said that while Netflix’s business is fundamentally simple to understand, "we have lost confidence in our ability to predict the company’s future prospects with a sufficient degree of certainty."
Valuation worries
The appeal of tech stocks has dimmed in recent months mainly due to high valuation coupled with missed or slowing sales targets. Apple (NASDAQ:AAPL), in October 2021, missed the market’s revenue expectations due to the lingering global chip shortage that has been affecting its iPhone production.
Apple’s price-to-earnings (P/E) ratio, a measure of whether it is over- or under-valued, surged to 35.45 at the end of 2020 before retreating to 28 in the first quarter of 2022. This means that investors are paying $28 for every $1 of the company’s earnings.
The iPhone maker’s current PE ratio, however, is still lower than that of its peers, including Netflix, Amazon.com (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA), whose P/E ratio’s are all above 50.
Most overvalued tech stock
Tesla’s stock price has jumped 26% over the past year, but down 40% year-to-date. Over a month ago, the carmaker joined a growing list of megacap companies to enact a stock split after its shares blew past $1,000 in October 2021. Stock splits make shares more attractive to retail investors but doesn’t change its PE ratio.
Many analysts say Tesla is the most overvalued tech and automotive stock in the market and even its own CEO Elon Musk shared the same view at one point, tweeting two years ago that the company’s stock price “is too high imo.” That tweet knocked 10.3% off Tesla’s stock price on May 1, 2020.
However, some still see the company's current market value as reflective of Tesla’s potential to further expand its dominant position in the electric-vehicle market. In 2021, Tesla held a nearly 14% share of the global EV market, beating rivals Volkswagen, BYD (HKG:1211), General Motors (NYSE:GM) and BMW, among others.
A counter to the recent pessimism
While many financial watchers cast doubt on tech firms’ ability to meet sales targets and justify their high valuations, some say the recent tech sell-off is irrational while remaining upbeat about tech’s future performance especially in the area of new tech trends like big data and artificial intelligence.
Netflix 171% move coming but first...some thoughts. Netflix pulled a squid games, (look up squid games crypto if you're lost) but honestly Netflix shit the bed. But now the beds being cleaned and you can start accumulating in this area $190 - $217 to sell in the mid $500's.
Reasoning: Gap fill at $198 and lots stop losses hit me thinks <$200 and then run up to the top of the Ichimoku cloud on the daily which coincides with ~540.
I'm setting a tight stop just in case of future Ackman scares.
NFLX still more legroom to drop furtherNFLX price crossed first support level and moving towards 133 support level.
MACD has huge divergence with a failed cross.
Stochastic and RSI in oversold territory which signals continuation of this trend.
Chart pattern has a flag formation which led into further price decrease. Very steep trend showing bearish sentiment.
NETFLIX HORRIBLE !!! WILL NFLX DROP ANOTHER +10% ¿?DAMN... $NFLX doing so bad :(
Anyway, I think it will recover in the long term (RSI shows undervalued & price dropped so hard) but I don't think ATH will be easy for NFLX anymore... Sorry guys :(
These are my scenarios for Netflix... It could drop more and accumulate there (very possible) or Netflix could recover step by step and accumulate at those levels...
We'll see, I never invested on NFLX but I won't buy stocks this year that's sure. I prefer wait and see what happen next year because this company looks so bad IMO.
REMEMBER ALWAYS #DYOR :)