Stock of the day: Netflix
09 May 2023
Today, a short update on the Netflix situation. We analyzed this instrument not so long ago – at the end of April. Back then, the price was bouncing off the key support with a hammer candle on the daily chart and we were quite optimistic about that:
“The hammer candle alone can be a promising signal to buy. In my opinion, Netflix’s sentiment remains positive, and this is likely to continue as long as the price remains above the black up-trend line and green neckline”
Now we are coming back to Netflix, as the instrument is approaching the end of the symmetric triangle pattern (black lines), which means that we should get a signal coming from the breakout out of this formation soon. Which way will the breakout turn out? This is a valid question, but price action traders should not sweat it too much, as they usually wait for a breakout and trade the proper direction.
The price breaking the upper line of the triangle will be a signal to go long and breaking the lower line will give us a signal to sell. In my opinion, considering the global sentiment, the first option is still more probable.