NFLX fails to close above 50-day moving average
Netflix Inc. (NFLX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NFLX finished Wednesday at 483.86 losing $12.13 (-2.45%), underperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NFLX as at Sep 16, 2020):
Wednesday's trading range has been $21.24 (4.25%), that's slightly below the last trading month's daily average range of $21.96. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NFLX. Prices continued to consolidate within a tight trading range between 471.30 and 506.29 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Black Candle.
After spiking up to 504.55 during the day, the market found resistance at the 50-day moving average at 501.48. After having been unable to move lower than 481.63 in the prior session, the share found buyers again around the same price level today at 483.31. The last time this happened on September 11th, NFLX actually lost -1.20% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the close-by swing low at 471.30 where further sell stops could get activated. Trading close to July's low at 454.00 we might see further downside momentum if potential sell stops at the level get triggered.
Among the eight 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. Though it is usually interpreted as bearish, it has actually shown to be bullish for Netflix. Out of 191 times, NFLX closed higher 52.36% 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 62.30% with an average market move of 2.64%.
With four out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are FB losing -3.27% and AAPL closing -2.95% lower. None of the markets managed to end the day in the green. Read more