NFLX pushes through Wednesday's high
Netflix Inc. (NFLX) Technical Analysis Report for Jan 10, 2019 | by Techniquant Editorial Team
NFLX finished Thursday at 324.66 gaining $4.70 (1.47%), strongly outperforming the Nasdaq 100 (0.31%). Today's close at 324.66 marks the highest recorded closing price since November 7, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 323.35, the stock confirmed its breakout through the previous session high after trading up to $2.02 above it intraday.
Daily Candlestick Chart (NFLX as at Jan 10, 2019):
Thursday's trading range has been $12.86 (4.09%), that's slightly below the last trading month's daily average range of $14.51. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NFLX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on Monday, NFLX gained 1.56% on the following trading day.
After having been unable to move lower than 313.50 in the prior session, Netflix found buyers again around the same price level today at 312.51.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 275.44.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Netflix. Out of 102 times, NFLX closed higher 55.88% 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 61.76% with an average market move of 2.56%.
With three out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are GOOGL losing -0.26% and AMZN closing -0.19% lower. On the flipside the best performer has been AAPL closing 0.32% higher. Read more