Asset Watch
Tuesday, October 25 2022
Netflix sunk by more than 30% after reporting poor first-quarter earnings on Apr. 19. However, the after-hours sell-off created a large gap that has yet to be filled. So, if Netflix maintains its bullish momentum, next-level resistance of $329 is near the March and pre-gap intraday lows, and a realisation implies a nearly 14% upside.
On the other hand, a concern for Netflix is its daily RSI near 70 signals overbought conditions. While the uptrend can continue, a cooling-off period may be needed.
Is it wise to wait for a pullback to the 200-day MA ($278.21) or will Netflix fill the gap near $329 without any interruptions?