Is It A Good Time To Watch Netflix?

Photo by freestocks on Unsplash

Technical traders might want to watch Netflix, Inc. (NFLX).  On April 19th, the company announced earnings that made Wall Street mad. NFLX finished trading at $348.61 on the 19th, released their first quarter report card, investors gave the streaming company an F, shares opened more than $100 lower and settled at $226.19 on the 20th.


Shares of Netflix drifted a little lower before settling in a trading range predominantly bound by $175 on the bottom and $200 on top. Although NFLX remains in the same channel, its price is bumping its head against a pair of technical resistance levels, a descending trend line connecting tops and its 50-day moving average.

A move above both would likely be viewed as bullish by Wall Street computer algorithms and drive NFLX higher. Two-hundred bucks would still act as resistance but might not have the same durability as it had since early May. If the stock can get by $200, then there aren’t many obstacles before $225. Get by $225 and then a direct path to $250 emerges. Two-fifty is the gateway to closing the $100 earnings gap down.

On the downside, a close below $165 is about as low as we’d be willing to go.

Short-term/swing trading is only for the most aggressive investors who are willing to lose money in short periods of time.

Rich Meyers
Investing Trends