NFLX breaks back above 20-day moving average
Netflix Inc. (NFLX) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NFLX finished Monday at 377.34 surging $16.99 (4.71%), notably outperforming the Nasdaq 100 (0.31%). This is the biggest single-day gain in over three months. Today's close at 377.34 marks the highest recorded closing price since March 21st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 360.41, the market confirmed its breakout through the previous session high after trading up to $17.28 above it intraday.
Daily Candlestick Chart (NFLX as at Apr 22, 2019):
Monday's trading range has been $18.69 (5.2%), that's far above the last trading month's daily average range of $9.54. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NFLX.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on April 18th, NFLX gained 4.71% on the following trading day.
The share managed to close back above the 20-day moving average at 361.91 for the first time since April 11th. Prices are trading close to the key technical resistance level at 379.00 (R1).
Crossing above the upper Bollinger Band for the first time since March 21st, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 361.91 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 379.00, upside momentum could accelerate should Netflix be able to break out to new highs for the year.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Netflix. Out of 314 times, NFLX closed higher 52.87% 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 61.46% with an average market move of 3.16%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are FB gaining 1.77% and AMZN closing 1.38% higher. None of the markets ended the day in the red. Read more