Wednesday, July 13, 2011

Netflix: Poised to rise higher? Technical analysis

Over the last few days, months and probably years Netflix stock has been touching new grounds and has been on an uptrend. When the stock broke the $200 barrier there were talks of it being overbought. Let us look at some quick technical facts for NFLX.

As you can see from the chart below the stock trades in a pattern from being oversold to overbought. MACD looks to be well in the high range and has been higher. I am beginning to think that the stock is in overbought range and we will see a pullback to the late 200s.


Moreover the stock trades or tries to touch is 200 day MA and seems to rise above it or go marginally below and then rebound.
Recently NFLX has been sharing some news about latin America expansion followed by change in pricing.

Is NFLX done with its run?

Disclosure: I am long NFLX


MoneyCone said...

On news, it's also been taking a lot of flak on it recent price change!

I wonder what the investor sentiment would be on this...

Inq said...

thanks for ur note. yes nflx has been in the news.