NFLX breaks below Monday's low
Netflix Inc. (NFLX) Technical Analysis Report for Sep 10, 2019 | by Techniquant Editorial Team
NFLX finished Tuesday at 287.99 losing $6.35 (-2.16%) on high volume, strongly underperforming the Nasdaq 100 (-0.23%). Today's close at 287.99 marks the lowest recorded closing price since January 3rd. Trading $6.01 higher after the open, Netflix was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Monday's low at 290.60, the share confirmed its breakout through the previous session low after trading up to $7.94 below it intraday.
Daily Candlestick Chart (NFLX as at Sep 10, 2019):
Tuesday's trading range has been $14.51 (4.98%), that's far above the last trading month's daily average range of $8.11. 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 Bearish Spinning Top. The last time a Bearish Spinning Top showed up on August 26th, NFLX lost -1.34% on the following trading day.
Prices broke below the key technical support level at 288.00 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Netflix. Out of 190 times, NFLX closed higher 53.16% 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 63.68% with an average market move of 3.49%.
With two of the other FAANG Stocks closing higher and two closing lower today, the winners of the day are AAPL surging 1.18% and GOOGL gaining 0.04%. On the flipside the worst performers have been FB closing -1.37% lower and AMZN losing -0.59%. Read more