NFLX Breakout Coming, Upward Pennant & Supporting Technicals
NFLX staged an excellent Christmas rally, but the steam got let out of the tires on their earnings call due to their cash burn. It seemed that everyone's favorite winner suddenly needed some reality to check in on its cash earnings. Fast forward nearly a month later, and fears of a recession are subsiding with the Nasdaq rising up over the 20 and 50 day averages and beginning to test the resistance on the 200 day. Maybe it's time for one of the Nasdaq darlings to begin to rally again?
The price action has more room to run with an RSI just above 60 and the MACD histogram flattening out indicating that a looming breakout will be happening any day. ADX is still reading above 25 indicating a potential for a trend continuation with DI+ rising and DI- falling simulataneously to support the theory that the breakout will be an upward direction. Short interest has started to rise for the bears hoping for a downward breakout, but still firmly below 10% of the average daily volume and an increasing volume on up days has the appearance of bullish big money investors buying up.
I have been holding since last week and anticipate some upward price action with a stop limit in place that I'll ratchet upward with a trailing ATR strategy for profit retention. If you agree with my theories, this could be a good buying signal, or you could wait a few days for confirmation before following on a future upward breakout.
The price action has more room to run with an RSI just above 60 and the MACD histogram flattening out indicating that a looming breakout will be happening any day. ADX is still reading above 25 indicating a potential for a trend continuation with DI+ rising and DI- falling simulataneously to support the theory that the breakout will be an upward direction. Short interest has started to rise for the bears hoping for a downward breakout, but still firmly below 10% of the average daily volume and an increasing volume on up days has the appearance of bullish big money investors buying up.
I have been holding since last week and anticipate some upward price action with a stop limit in place that I'll ratchet upward with a trailing ATR strategy for profit retention. If you agree with my theories, this could be a good buying signal, or you could wait a few days for confirmation before following on a future upward breakout.
Komentar:
NFLX is still sleepily loping along in a mostly sideways direction, but small gains above the S&P500 index benchmark are starting to warm up. I anticipate a strong breakout within the next week or two.
Komentar:
Still meandering along sideways, but looking up against a down market couple of days. Maybe another breakout coming soon to a screen near you?