Stock of the day: Netflix

Yesterday’s market session was spectacular, with massive gains across major indices such as Nasdaq, which moved from monthly lows to highs in just two days. In today’s analysis, I’d like to focus on Netflix, which has shown a promising bullish situation on its chart.

However, in the long-term, Netflix’s price movements have not been very encouraging. Over the past few days, the price has been finishing the right shoulder of a Head and Shoulders formation (indicated in yellow), and we are approaching the neckline (indicated in green). A breakout below the neckline would trigger a sell signal, especially since it would coincide with a long-term black uptrend line. Such a breakout would likely magnify the sell signal.

Yesterday, Netflix’s price initially dropped but later in the session, buyers launched a counter-attack. This is an important development because the price created a hammer candle on the daily chart, close to the aforementioned supports. The hammer candle alone can be a promising signal to buy. In my opinion, Netflix’s sentiment remains negative, and this is likely to continue as long as the price remains above the black uptrend line and green neckline.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-netflix-1