NASDAQ: NFLX – I Don’t See Anything Compelling on Netflix Right Now

Netflix Inc. (NFLX) has global recognition as a streaming service. However, the industry is growing and now you can even consider an ETF in this disruptive technology — the Roundhill Streaming Services & Technology ETF with the symbol (SUBZ) . Let’s stick with individual names for now, though, and see what the charts of NFLX look like today. 

In the daily bar chart of NFLX, below, we can see that the shares have largely been stuck in a wide trading range bounded by $460 and $580, give or take. Prices have crisscrossed the 50-day moving average line many times but we can now see the shares trading above the rising 50-day average. The 200-day line is rising and was almost tested last month.

The On-Balance-Volume (OBV) line has been moving up and down with the price action and overall has only moved sideways. The Moving Average Convergence Divergence (MACD) oscillator is showing us a similar sideways picture.  

In the weekly Japanese candlestick chart of NFLX, below, we can see a more positive-looking chart than the daily one above. Here we can see prices in a longer-term uptrend above the rising 40-week moving average line. The weekly OBV line also shows us sideways movement but looking closer we can see improvement in the past three months or so.

The MACD oscillator has just crossed to the upside for a new buy signal after a lengthy correction. 

In this daily Point and Figure chart of NFLX, below, we can see a potential upside price target in the $620 area but the chart needs an upside breakout to refresh the uptrend.  

Bottom-line strategy: With only a $620 price target from our Point and Figure chart (above) I don’t feel justified in recommending the long side here. I would suggest a sell stop just below $500 so the risk/reward ratio does not look at that appealing for now.