NFLX dominated by bulls lifting the market higher throughout the day
Netflix Inc. (NFLX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
NFLX ended Thursday at 362.99 gaining $20.60 (6.02%) on low volume, slightly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 362.00, the market confirmed its breakout through the previous session high after trading up to $1.84 above it intraday.
Daily Candlestick Chart (NFLX as at Mar 26, 2020):
Thursday's trading range has been $22.11 (6.43%), that's slightly below the last trading month's daily average range of $23.29. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for NFLX. Prices continued to consolidate within a tight trading range between 332.00 and 372.93 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Netflix managed to close back above the 50-day moving average at 356.53. Prices are trading close to the key technical resistance level at 375.25 (R1). After having been unable to move lower than 339.17 in the prior session, the share found buyers again around the same price level today at 341.73. The last time this happened on March 13th, NFLX actually lost -11.14% on the following trading day.
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 nearby swing high at 372.93 where further buy stops might get activated. With prices trading close to this year's high at 393.52, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the 11 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 763 times, NFLX closed higher 50.59% 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 61.73% with an average market move of 2.05%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are GOOGL gaining 5.56% and AAPL closing 5.26% higher. None of the markets ended the day in the red. Read more