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Trends & Analysis
News

British pound continues last week’s downtrend

News

Is Microsoft too cheap to ignore?

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US dollar surges to 7-week high on NFP data

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Shares of Levi Strauss tumble amid weak sales

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Crude oil breaches $70 amid geopolitical concerns

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Will silver soar to $35?

Trends & Analysis
News

British pound continues last week’s downtrend

News

Is Microsoft too cheap to ignore?

News

US dollar surges to 7-week high on NFP data

News

Shares of Levi Strauss tumble amid weak sales

News

Crude oil breaches $70 amid geopolitical concerns

News

Will silver soar to $35?

Asset Watch

Is Netflix a must-see stock?

Tuesday, October 25 2022

After Netflix added 2.41 million net subscribers in Q3 versus management’s expectation of one million, the streaming giant was back in investors’ good graces. Netflix’s letter to shareholders stated that despite “a challenging first half, we believe we’re on a path to reaccelerate growth” and that “we estimate [our competitors] are all losing money, with combined 2022 operating losses well over $10 billion, vs. Netflix’s $5 to $6 billion annual operating profit.”
With the fundamentals trending in a positive direction, will the technicals remain as resilient?
On Oct. 21, Netflix closed above its 200-day moving average for the first time since January. Stocks also soared above its 50-day MA, and the key level acted as resistance until it became support in July. Therefore, momentum is in place for the first time in a long time.
Netflix Stock Chart Trading View

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?


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