NFLX closes within previous day's range
Netflix Inc. (NFLX) Technical Analysis Report for Dec 06, 2018 | by Techniquant Editorial Team
NFLX ended Thursday at 282.88 gaining $7.55 (2.74%), notably outperforming the Nasdaq 100 (0.64%) ahead of tomorrow's NFP report. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NFLX as at Dec 06, 2018):
Thursday's trading range has been $15.74 (5.87%), that's slightly above the last trading month's daily average range of $15.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NFLX.
Three candlestick patterns are matching today's price action, the Bullish Closing Marubozu, the Piercing Pattern and the White Candle which are known as bullish patterns. The last time a Bullish Closing Marubozu showed up on March 29th, NFLX actually lost -5.10% on the following trading day.
Buyers managed to take out the key technical resistance level at 278.30 (now S1), which is likely to act as support going forward.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 298.72 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Netflix. Out of 748 times, NFLX closed higher 52.81% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.17% with an average market move of 2.76%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are AMZN gaining 1.85% and GOOGL closing 1.47% higher. On the flipside the worst performer has been AAPL closing -1.11% lower. Read more