NFLX stuck within tight trading range
Netflix Inc. (NFLX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NFLX finished the week 3.72% higher at 380.40 after losing $1.00 (-0.26%) today, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading $3.68 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NFLX as at Feb 14, 2020):
Friday's trading range has been $5.71 (1.5%), that's far below the last trading month's daily average range of $10.39. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NFLX. Prices continued to consolidate within a tight trading range between 375.88 and 385.37 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on January 3rd, NFLX actually gained 3.05% on the following trading day.
Prices are trading close to the key technical resistance level at 385.37 (R1). After having been unable to move above 385.37 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 385.15.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 385.37 where further buy stops might get triggered. 2019's high at 385.99 is within reach and we could see further upside momentum should Netflix manage to break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Netflix. Out of 762 times, NFLX closed higher 50.92% 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 62.07% with an average market move of 2.17%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are FB gaining 0.49% and GOOGL closing 0.35% higher. On the flipside the worst performer has been AMZN closing -0.7% lower. Read more