Netflix (NFLX) is down 11% in 7 days and is almost at support from the important, high conviction breakout in April @390.
Chart 1 shows Netflix repeatedly stalled at the 390 level from October 2019 to April 2020. The eventual breakout was very constructive; leading to a huge 3-day rally (see zoom chart).
Now Netflix is close to 390 support, which should be a good entry point. Comparing Netflix to the S&P500 (SPY – chart 3) and the Communications sector (XLC – chart 4), it has also fallen back to breakout levels versus these benchmarks. Such should signal support.
On a comeback rally, Netflix should see new highs.
Netflix – Zoom
Ratio of NFLX/SPY
Jeff Marcus founded Turning Point Analytics (TPA) in 2009 after 25 years on trading desks and 13 years as a head trader to provide strategic and technical research to institutional clients. Turning Point Analytics (TPA) provides a unique strategy that works as an overlay to clients’ good fundamental analysis. After 10 years of serving only large institutions, TPA now offers its research services to mid and small managers, RIA’s, and wealthy sophisticated individuals looking for a way to increase their returns and outperform their peers.