Netflix, Inc. (NASDAQ:NFLX) was really amazing last week. Not only did NFLX start off the week with gains and a strong breakout but it maintained high levels throughout the entire week. The chart above of the stock shows clearly that “bulls” were able to overcome another attempt by “bears” to stall the sharp rally from the July low.
After a short pause in a sideways consolidation pattern between 95 and 100, during which the 50-day exponential provided a good support, it broke out upwards. The stock rebounded nicely on Friday after touching the lower line of this bull flag and with a positive market next week i think this stock should be moving higher.
Technical daily chart shows very strong bullish sign. First of all, the stock is trading above both 50-day and 200-day moving averages with both moving averages pointing upwards. Then the daily MACD is rising above “0” also indicating a buy. In addition, KD line and ADX still show the stock is on the positive swing.As long as the stock stay above the $100 price level, the bullish scenario still intact.
I want to remind all readers of Stockal that NFLX is often volatile and a fast moving stock, so I suggest everyone to book profits quickly around the key resistances lines and please don’t get greedy.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.