NFLX, Breakout Of The Triangle, Aiming For Targets In The Range!Hello Traders Investors And Community, welcome to this important analysis about the current price-action situation within NFLX, it is clearly one of the profiteers of the corona-crisis as people staying at home in the lock-down and watching netflix-series. It is a good thing to relax especially in the current crisis where there is so much time left on the hand and nothing to do. So anyway this should not be a recommendation from my side but it is a growing economic field in the current crisis which shouldn't be ignored similar to the retail business like amazon or alibaba. On the technical side, I discovered some important bullish signs which made it clear that NFLX will develop some more moves to the upside, as it is at an all-time-high-level we are looking at the weekly perspective.
As you can see marked in my chart with the blue lines netflix just broke out a major ascending triangle which you can see marked with the blue lines in my chart. Netflix saw some good volume which confirmed the overall breakout and activated the target at the 580 level marked in green. This is the overall triangle target we have in the structure and it will also be the new all-time-high. To confirm it regularly we need to confirm the upper boundary of the ascending triangle, in this range we also have support from the 50-EMA, therefore, it is building a coherent bearish confluence-cluster in this range which you can see marked with the orange box in this level.
After the triangle target has been reached which is highly possible at the moment we need to see how NFLX develops further and if we can manage to climb above the triangle target and continue with its established uptrend. When we get some serious bearish pressure signs in that level it will be a interesting consideration to open up a short in this area otherwise the overall shape in trend is still in the direction upwards. The confirmation of the triangle can be used as a good conservative entry point to aim for the overall triangle target, otherwise the more conservative approach will be after we formed another high with good volatility after the triangle confirmed.
This price-movement in NFLX which we see here is anticyclical to the vast rest of the market because we established already an all-time-high in NFLX here. As I pointed out already in recent analysis there are gainers and losers in the current crisis and when considering something on the long-side we need to search to the truffles and hidden guesses we have in the market. It makes no sense to buy something which is cyclical with the market and don't profits from the current crisis like airlines which one of the smartest investors, warren buffet just sold recently. Therefore we should not fall for the illogical speculative approach like many people these days and look for stocks with a solid fundamental and technical base like NFLX in this case.
Thanks for watching everybody, support for more market insight and all the best!
Information provided is only educational and should not be used to take action in the markets.
