Wed 01'st Aug 2018
Netflix Stock Analysis
Technical stock analysis for Wed 01'st Aug 2018
|Shorts||1.29% ( 2018-07-13 )|
|Cash||4 569.3 mill|
Netflix gained 0.28% in the last trading day, rising from $337.45 to $338.38, and has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has been going up and down for this period, and there has been a -9.8% loss for the last 2 weeks. Volume fell in the last day by -6.27 million shares, and in total, 7.76 million shares bought and sold for approximately $2 626.41 million. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
Netflix lies in the lower part of a very wide and strong rising trend in the short term, and this will normally pose a very good buying opportunity. A break down the bottom trend line at $336.90 will firstly indicate a slower raising rate, but may also be a early warning for a trend shift. Given the current short-term trend, the stock is expected to rise 15.91% during the next 3 months and, with 90% probability hold a price between $390.50 and $515.64 at the end of this period.
A buy signal was issued from a pivot bottom point on Monday July 30, 2018, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. Netflix holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at $349.90 and $386.14. A break-up above any of these levels will issue buy signals.
Relative Strength Index (RSI)
RSI14 is 15 and the stock is extremely oversold on RSI14 and is now having a minor correction up. Further gains in the short-term can be expected, and some stocks will provide a very good short-term return from this kind of RSI position unless there is a fundamental risk for bankruptcy or other issues that may affect the stock negatively.
Support & Resistance
Netflix finds support from accumulated volume at $337.45.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $10.39 between high and low, or 3.11%. For the last week, the stock has had a daily average volatility of 3.96%.
Netflix is overbought on RSI14 (15). Some stocks may go long and hard while being overbought on RSI, but overbought increases the general risk as higher volatility could be expected, and at some level the stock will have a reaction back to gain new strength.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
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The Netflix stock holds several negative signals and despite the positive trend we believe Netflix will perform weak in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock.Click for Top 5 Sell Candidates