NFLX finds buyers at key support level
Netflix Inc. (NFLX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NFLX ended the month 8.41% higher at 455.04 after gaining $7.80 (1.74%) today on low volume, slightly underperforming the Nasdaq 100 (1.96%).
Daily Candlestick Chart (NFLX as at Jun 30, 2020):
Tuesday's trading range has been $10.35 (2.3%), that's below the last trading month's daily average range of $14.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NFLX.
After trading down to 447.15 earlier during the day, the stock bounced off the key technical support level at 449.52 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 5th, NFLX actually lost -0.03% 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 468.03 where further buy stops might get triggered.
Among the three 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 308 times, NFLX closed higher 52.27% 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 58.77% with an average market move of 2.71%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are AMZN gaining 2.93% and FB closing 2.91% higher. None of the markets ended the day in the red. Read more