Tuesday, 19 April 2016

NFLX - rising support broken

With Q1 earnings/outlook disappointing the market, Netflix (NFLX) started the day badly, and settled powerfully lower, -13.0% @ $94.29, the lowest level since March 1'st. With the loss of the 50dma, next support is the $90 threshold, and then the Feb'8th low of $79.95.

NFLX, daily

NFLX, monthly, 8yr


Suffice to add... I think the company is producing some of the finest shows ever made - not least Sense8, Daredevil and Jessica Jones.

However, the company is increasingly struggling to meet ever demanding market expectations. Despite a better than expected EPS of 6 cents on rev' of almost $2bn.... the market is still not satisfied.

Reading around today, I see an awful lot of 'crash calling' for NFLX, which of course, is somewhat ironic AFTER the market has smacked the stock back under the psy' level of $100.

If.. (and its a big if), the main market fails to keep pushing higher into the summer - and eventually breaks <sp'1810, then NFLX looks especially vulnerable. A move to at least test the Feb' low around $80 looks very viable.

The giant monthly cycle offers the $60/50 zone across the rest of this year.

*no position... I shall merely continue to enjoy the content.