The good news for Netflix (NFLX) investors is that Disney‘s (DIS) new streaming service is having very effect on Netflix subscriptions. Netflix investors should not stop watching this as new streaming services are poping up everyday including the TV networks that have pulled popular shows like “The Office.” Netflix shares are trading at a three-month high, gaining 5.2% since early November. Since the beginning of the year, the emitter’s quotes have added more than 13% in value. Last week, Disney launched the Disney+ service, immediately receiving 10 million subscribers. However, Netflix did not record a decrease in the number of daily active users in the first week of a competitor’s launch, which was positively received by investors.
During the last week, the stock of Netflix grew by 3.63%. S&P500 went up by 0.92% within the same period.
Support and resistance
The emitter began to recover after a prolonged fall. #NFLX quotes updated local maxima. Currently, the company’s shares are testing the resistance level of 305.00. 285.00 is a key support level. The instrument has the potential to further growth.
Indicators don’t give a clear signal: the price crossed MA(200); MACD histogram started to grow. Positions are to be opened from key levels.
Comparing the company’s multiplier with its competitors in the industry, we can say that Netflix shares are overvalued.
Support levels: 285.00, 265.00, 253.00.
Resistance levels: 305.00, 315.00, 335.00.
Trading Ideas
If the price consolidates above the resistance level of 305.00, further growth of #NFLX quotes is possible. Potential profits should be locked in by orders at 320.00, 335.00, and 345.00. Stop-loss – 290.00.
If the price consolidates below 285.00, one may consider buying the company’s stock. The target movement level will be 260.00–250.00. Stop-loss – 300.00.
Implementation period: 3 days.
1 Day Moving Averages
Exponential Moving Average (5) 297.43 Buy
Simple Moving Average (5) 294.59 Buy
Exponential Moving Average (10) 293.88 Buy
Simple Moving Average (10) 292.89 Buy
Exponential Moving Average (20) 289.71 Buy
Simple Moving Average (20) 287.90 Buy
Exponential Moving Average (30) 287.81 Buy
Simple Moving Average (30) 285.28 Buy
Exponential Moving Average (50) 288.95 Buy
Simple Moving Average (50) 281.49 Buy
Exponential Moving Average (100) 299.99 Buy
Simple Moving Average (100) 302.07 Buy
Exponential Moving Average (200) 312.92 Sell
Simple Moving Average (200) 330.97 Sell
Ichimoku Cloud Base Line (9, 26, 52, 26) 287.27 Neutral
Volume Weighted Moving Average (20) 288.21 Buy
Hull Moving Average (9) 300.12 Buy
1 Day Oscillators
Relative Strength Index (14) 62.76 Neutral
Stochastic %K (14, 3, 3) 87.34 Neutral
Commodity Channel Index (20) 154.93 Sell
Average Directional Index (14) 25.24 Neutral
Awesome Oscillator 10.24 Buy
Momentum (10) 14.57 Sell
MACD Level (12, 26) 4.53 Buy
Stochastic RSI Fast (3, 3, 14, 14) 95.42 Neutral
Williams Percent Range (14) −12.51 Sell
Bull Bear Power 19.46 Neutral
Ultimate Oscillator (7, 14, 28) 58.67 Neutral
Netflix Stock Recommendations
Oct-28-19 Reiterated Imperial Capital Outperform $451 → $446
Oct-17-19 Reiterated BofA/Merrill Buy $450 → $426
Oct-17-19 Downgrade Macquarie Outperform → Neutral $375 → $325
Oct-14-19 Reiterated Morgan Stanley Overweight $450 → $400
Oct-10-19 Reiterated Goldman Buy $420 → $360
Oct-09-19 Reiterated Rosenblatt Neutral $330 → $265
Oct-09-19 Reiterated Monness Crespi & Hardt Buy $440 → $340
Oct-08-19 Reiterated Aegis Capital Hold $310 → $275
Oct-07-19 Reiterated Evercore ISI In-line $380 → $300
Sep-24-19 Reiterated Pivotal Research Group Buy $515 → $350
Sep-24-19 Initiated Wells Fargo Market Perform $288
Aug-29-19 Reiterated Imperial Capital Outperform $458 → $451
Jul-18-19 Reiterated Pivotal Research Group Buy $500 → $515
Jul-10-19 Reiterated Rosenblatt Neutral $350 → $370
Jul-10-19 Reiterated Evercore ISI Outperform $350 → $380
Jun-20-19 Initiated Wolfe Research Outperform $442
Jun-17-19 Reiterated Piper Jaffray Overweight $440
Jun-04-19 Upgrade Loop Capital Hold → Buy
Apr-26-19 Reiterated Imperial Capital Outperform $463 → $458
Apr-16-19 Upgrade Deutsche Bank Hold → Buy $360 → $400
