Netflix technical analysis

Technical analysis: lower highs for Netflix

Globaltrader24 has indicated his negative outlook for Netflix stock earlier this year and regular visitors of our blog have been able to benefit from a short position in Netflix.

Higher levels are not followed by higher highs

Netflix’s shares are very popular, especially among the younger generation. They believe in the future of the company and the unique content that is offered. The competition, however, is huge, production costs are high and the company is not making any profit. A P / E ratio of 305 would therefore seem way too overvalued. We have indicated earlier this year that there were possibilities for a short trade on Netflix.

Technically, the share shows great movements around news events such as the quarterly figures. After publication of the quarterly figures the share nosedived, after which it recovered to higher levels. The higher levels, however, are not followed by higher highs. Instead, the graph shows lower highs.

After publication of the latest quarterly figures, Netflix shares dropped to $ 84.50. Here, a double bottom was formed after which the price has risen and is now around the $ 100 resistance level.

Netflix at resistance levelNetflix overvalued

Should the price break the resistance of $ 100, supported by a high volume, then higher rates are possible. However, this seems very unlikely to me. The price is held back by the 100-day and 200-day average. In addition, the volume is decreasing further and further.

A step back is therefore very likely. A price lower than $ 85 opens the way to even lower levels.

Start trading for free

Many of our visitors have already found a broker and have been making profits on the financial markets. You can also start trading for free today. Go to our broker reviews page and select the best broker for you. Most brokers offer a free welcome bonus and a demo account so you can start without risk!

Post Author: globaltrader24

Leave a Reply

Your email address will not be published. Required fields are marked *