Netflix Analysis, A breakout is near

2021年8月10日

Hello everyone, as we all know the market action discounts everything :)

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The Netflix stock price is still trending in a sideways channel between the ranges of 478.73 and 565.39, the side movement of the trend is still not broken and the market is trending in the middle range of the channel, Note that the Major trend is still bullish for the stock with no major reversal signs yet.

We could be seeing a movement in the current trend in the next period of time which could affect the major trend, but a confirmation and a breakout is needed to say that the trend has changed.

Talking about a lower time frame, On the daily basis we are looking at 2 different Scenarios in the next few days :

Scenario 1 :

after a Bullish Harami pattern has emerged in the market, the price will most likely move up and hit the first resistance level at 529.81, if the Bulls were able to hold control then the price will keep going up and will be headed to the resistance line at 551.28 which would bring the Stock price to near the high edge of the channel where we could be seeing a Bullish breakout for the long term trend.

Scenario 2 :

The bears are still in control right now and will try to bring the stock price lower, their first stop would be the first support line at 508.34, where the Bulls will have a chance to regain control, but if the Bears were able to hold that control then we will be seeing the price going even lower and hitting the support line at 486.81 which would bring the stock price near the low edge of the channel where we could be a Bearish breakout for the long term trend.

Technical indicator showing :

1) The Market price for the daily trend is above the 5 10 50 100 200 MA and EMA (Bullish sign)
2) The RSI is at 49.66 showing that the market is in a Neutral state right now, a movement in the price could be up or down.
3) The Stoch is showing a positive crossover between %K and D%, No divergences were found between the indicator and the market. (Bullish sign)
4) The Ultimate Oscillator is at 60.033 and giving a buy signal.

Support & Resistance points :
support Resistance
1) 508.34 1) 529.81
2) 496.12 2) 539.06
3) 486.81 3) 551.28

Fundamental point of view :


A federal judge on Monday said Netflix Inc must face a defamation lawsuit by former Manhattan prosecutor Linda Fairstein over her portrayal as a racist and unethical villain in "When They See Us," a 2019 series about the Central Park Five case.
U.S. District Judge Kevin Castel in Manhattan said Fairstein had plausibly alleged defamation as to five scenes, including that she withheld evidence, coerced confessions and directed a racially discriminatory police roundup of young men in Harlem.

The Earnings Per Share has grown by an impressive 62.73% over the past year. Measured over the past 5 years, NFLX shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.41% on average per year.
The short term is neutral, but the long term trend is still positive. Not much to worry about for now.

NFLX is in better financial health than average in its industry. Its Altman-Z score is much better than the industry average of 2.50. An Altman-Z score of 6.53 indicates that NFLX is not in any danger of bankruptcy at the moment.

This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!

Thank you for reading.