Netflix Inc (NFLX) - January 25, 2024
DAILY STOCK REPORT: NETFLIX INC* (NFLX)
*Shares of Netflix are held in portfolios managed by SIA Wealth Management.
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Netflix, Inc (NFLX) returned to the Green Favored Zone of the SIA S&P 100 Index Report in October, bouncing back from a brief dip down into the red zone. Since then, the shares have returned 35.0%, while the S&P 100 Index is up 18.7%.
Boosted by better-than-expected sales and subscriber growth, NLFX shares have popped 11.9% in the last week, while the S&P 100 Index is up 3.25% over the same period. After climbing 2 positions yesterday, NFLX is currently in 9th place.
Candlestick Chart Shows a Big Breakout Underway:
Netflix (NLFX) shares staged a major breakout yesterday, blasting through the $500.00 round number barrier on volume. The shares have been under accumulation since the summer of 2022. Last fall, the shares staged a significant selloff and rebound but had worked their way back up toward $480.00, near which they had paused in recent weeks to consolidate their late 2023 bounce.
Yesterday’s rally touched both the top and the bottom of a trading range between $480.00 support and $560.00 resistance with initial support possible near the $500.00 round number. This range previously prevailed through much of 2021 and may be re-emerging. If the shares break out again, next resistance after that may emerge near the $600.00 round number, or $640.00 based on a measured move.
Point and Figure Chart Shows Continuing Accumulation:
Netflix (NFLX) shares have been under accumulation since a big selloff bottomed out in June of 2022. Over the last 18 months, a recovery trend of consistently higher lows has unfolded. Last fall, the shares faced their toughest challenge when two double bottom breakdowns led to a significant pullback, but this was eventually contained by long-term uptrend support.
Since October, accumulation has resumed and the shares have climbed from near $350.00 toward $550.00 without even a 3-box correction along the way, a sign of strong underlying support. The shares have completed bullish Double Top and Spread Double Top breakouts which remain active.
Previous highs suggest next potential resistance may emerge near $587.30 or $701.90 on trend. Initial support appears near $501.25 based on a 3-box reversal, just above the $500.00 round number.
With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 9 out of 10, NFLX is exhibiting short-term strength against the asset classes.
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