Monday, 3 October 2016

NFLX - the strength of Luke Cage

Whilst the broader market closed moderately mixed, there was notable strength in Netflix (NFLX), settling +4.1% @ $102.63, the best level since late May. With the break >$100, near/mid term outlook is bullish. If the main market rallies into spring 2017, NFLX will be at least in the 120/130s.

NFLX, daily

NFLX, monthly


Today's gain really did break a wheel barrow of aspects of resistance. The daily close above the psy' level of $100 is very significant.

Next big level is the April high of $111.85, with viable upside to at least challenge the Dec'2015 high of $133.27 in spring 2017.

Netflix is increasingly churning out some of the best shows (at considerable costs). From a valuation perspective, today's gains merely make NFLX even less attractive. The current forward PE is around 115/120... which is clearly ludicrous.

Yours truly shall merely enjoy the shows.