Netflix Could Be Struggling
Netflix has been trying to recover from a bearish gap on April 20, but now the bounce may have run its course.
The first pattern on today’s chart is the March low of $329.82. NFLX peaked near the same level in mid-December. Has old support become new resistance?
Next is the sharp drop on December 15 after Digiday reported weak advertising metrics. That dragged the streaming-video stock under its 21-day exponential moving average (EMA). The 8-day EMA proceeded to cross below the 21-day EMA three sessions later.
Third, is the broken ascending wedge. That could reflect a failing uptrend.
Finally, notice how the Relative Strength Index (RSI) made lower highs in November and December as the stock made higher highs. Such bearish divergence is another potential sign of exhaustion.
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The first pattern on today’s chart is the March low of $329.82. NFLX peaked near the same level in mid-December. Has old support become new resistance?
Next is the sharp drop on December 15 after Digiday reported weak advertising metrics. That dragged the streaming-video stock under its 21-day exponential moving average (EMA). The 8-day EMA proceeded to cross below the 21-day EMA three sessions later.
Third, is the broken ascending wedge. That could reflect a failing uptrend.
Finally, notice how the Relative Strength Index (RSI) made lower highs in November and December as the stock made higher highs. Such bearish divergence is another potential sign of exhaustion.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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