NFLX: Price hikes = potential 3 Drives formation for -47%
If we look at what type of stocks to avoid in a bear market, one would say:-
#1 -ve cash flows type companies, high cash burn
#2 companies in fragmented industries
#3 companies which find it hard to raise prices....
...and I present NFLX... It burns cash like a M1 tank burns gas, every content provider is looking do a "Netflix" and NFLX has had a bad track record of raising prices while keeping maintaining subscribers' growth.
Technically speaking, NFLX is:-
#1 at the 78.6% retracement level
#2 experiencing a massive negative divergence between the price action and MACD.
If we extrapolate the 3rd wave down to get a price objective, it is a -47% scenario to $200 and a 6-month congestion zone in 2H-17 with a well defined stop out level.
#1 -ve cash flows type companies, high cash burn
#2 companies in fragmented industries
#3 companies which find it hard to raise prices....
...and I present NFLX... It burns cash like a M1 tank burns gas, every content provider is looking do a "Netflix" and NFLX has had a bad track record of raising prices while keeping maintaining subscribers' growth.
Technically speaking, NFLX is:-
#1 at the 78.6% retracement level
#2 experiencing a massive negative divergence between the price action and MACD.
If we extrapolate the 3rd wave down to get a price objective, it is a -47% scenario to $200 and a 6-month congestion zone in 2H-17 with a well defined stop out level.