NFLX plunges, losing $16.51 (-4.49%) within a single day on high volume
Netflix Inc. (NFLX) Technical Analysis Report for Apr 12, 2019 | by Techniquant Editorial Team
NFLX ended the week -3.93% lower at 351.14 after tanking $16.51 (-4.49%) today on high volume, significantly underperforming the Nasdaq 100 (0.44%). This is the biggest single-day loss in over three weeks. Today's close at 351.14 marks the lowest recorded closing price since March 8th. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (NFLX as at Apr 12, 2019):
Friday's trading range has been $12.39 (3.44%), that's above the last trading month's daily average range of $9.32. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NFLX.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed below the 50-day moving average at 359.03 for the first time since January 3rd. When this moving average was crossed below the last time on October 18, 2018, NFLX lost -4.05% on the following trading day.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Trading close to February's low at 336.50 we could see further downside momentum if potential sell stops at the level get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Netflix. Out of 131 times, NFLX closed higher 56.49% 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 61.07% with an average market move of 2.78%.
With two of the other FAANG Stocks closing higher and two closing lower today, the winners of the day are GOOGL surging 1.09% and FB gaining 0.9%. On the flipside the worst performers have been AMZN closing -0.05% lower and AAPL losing -0.04%. Read more