NFLX finds buyers again around 338.00
Netflix Inc. (NFLX) Technical Analysis Report for Feb 08, 2019 | by Techniquant Editorial Team
NFLX finished the week 2.27% higher at 347.57 after gaining $2.86 (0.83%) today, outperforming the Nasdaq 100 (0.12%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NFLX as at Feb 08, 2019):
Friday's trading range has been $10.00 (2.96%), that's slightly below the last trading month's daily average range of $10.65. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for NFLX.
One bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move lower than 339.02 in the prior session, the market found buyers again around the same price level today at 338.00. The last time this happened on February 1st, NFLX gained 3.38% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 360.00 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 336.50 where further sell stops might get activated.
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. Though it is usually interpreted as neutral, it has actually shown to be bullish for Netflix. Out of 750 times, NFLX closed higher 52.27% 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 63.07% with an average market move of 2.62%.
With three out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are AMZN losing -1.62% and GOOGL closing -0.32% lower. On the flipside the best performer has been FB closing 0.57% higher. Read more