Asset Watch
Tuesday July 16, 2024
However, the last three times Netflix closed below its 10-week MA with large red candles (marked by the vertical white lines), more weakness followed in the days and weeks ahead. As a result, you should monitor the 10-week MA to see if the breakdown is reversed this week.
If not, trendline support is present in the $639 area (the upward-sloping yellow line), and a bounce could materialise there. After that, the April lows near $550 (the horizontal white line) could be where the bulls step back in.
So, with Netflix up by more than 30% year-to-date (YTD), could the Jul. 18 earnings report be a ‘sell the news’ event, or was last week’s pullback an isolated episode?