Netflix may offer a trading opportunity with its cross above its 20 moving average

The Time View for Netflix

  • Currently, the price of NFLX is down -$0.11 (-0.06%) of the previous hour.
  • The hourly chart shows that Netflix has seen 2 hours straight.
  • Regarding the trend, note that the strongest trend exists on the 20 hour time frame.
  • Price action traders may also wish to note that we are seeing doji and pin bar candlestick patterns on Netflix. Since we see a downtrend on the 20 and 10 hourly candlestick patterns, and these candlestick patterns often denote reversals, this may be worth noting.
  • The moving averages over the hourly timeframe suggest instability in the price, as the 20, 50, 100 and 200 are all in a mixed alignment – ​​meaning the trend over the timeframes is inconsistent, indicating potential opportunity for remote merchants.

Netflix’s hourly price chart is shown below.

The Daily View for Netflix

  • As of this writing, the price of NFLX is down -$8.97 (-4.8%) from yesterday.
  • This is 2nd day in a row Netflix has seen its price drop.
  • Regarding the trend on the daily calendar, we see the clearest trend over the 100 day period.
  • What is most remarkable about the world of moving averages on the daily chart is that the 20 and 50 the daily moving averages have been crossed, so the price is now spinning below them. The moving averages on the daily time frame suggest a decline in price, as the 20, 50, 100 and 200 are all in a bearish alignment – ​​meaning the shorter duration moving averages are below the longer duration moving averages, this which implies a steady downward trend.

Below is a daily price chart for Netflix.

NFLX

TradingView Featured Netflix Idea

Below is a commercial comment titled NFLX: probably the most undervalued stock on the market you may find interesting:

In this article, I’ll break down Netflix (NFLX) from both a technical and a fundamental perspective, exploring a narrative as to why it may be the most undervalued company in the market right now. . below $190, while its 52-week high is $700. I hedged this stock when it was trading around $600 and said it was not an attractive buy at these levels. Now that it’s trading at $180 in the regions, I think it’s an amazing buy, and in fact, it could turn out to be a once-in-a-lifetime opportunity in the medium to long term. This message is not financial advice. This is for educational and entertainment purposes only. Fundamental Analysis – This massive drop was caused by Netflix’s first net user loss in a decade. – Netflix announced that it had lost around 200,000 users. – People interpreted this as a sign of weakness in the company’s fundamentals, and it led to a steep 30% drop in the stock price. – What people didn’t know at the time was that Netflix had lost 700,000 users in Russia alone, as it halted business operations in that region due to the invasion of Ukraine by Russia. – So taking that into account, Netflix actually gained 500,000 new users. But that’s not all.- Netflix has announced that it expects user numbers to decline in 2Q22 as well, which has further depressed stock prices.- Why exactly is this the case ? Netflix increased their subscription fees by more than 10% in 1Q22 alone.- With the effect of this price increase, they are expected to lose 1% of all of their users.- Frankly, an increase 10% in price, for a 1% loss in quantity (since revenues are simply p * q) is not a bad outcome at all. – Actually, it’s a successful move on Netflix’s side. Yet market sentiment says otherwise, falling more than 72% from all-time highs. However, this is not the first time that Netflix has increased its subscription fees. So why did this price increase in particular lead to a loss of users? – Netflix has three pricing plans – basic, standard and premium. – Netflix has always been aggressive with their price increase of the premium and standard plans, but not the basic plan. – When the price of premium plans increases, users are incentivized to just change their plan to a standard plan, if they are not willing to pay for the changed price plan, that’s why there was no loss of number of users; people might just downgrade their plans.- But when Netflix raises the subscription fees of its basic plan, there is no choice but to leave the platform.- So in 2019, when Netflix increased the subscription fees of its basic plan, this resulted in a loss of users.- And this is the first time since 2019 that Netflix has increased the prices of the basic plans.- Since Netflix entered the market much more than her…

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Garland K. Long