Netflix is a name I remain long and have traded around inside 12631, with a core entry from $224.36. In trying to determine if and when to add back to it, or whether to sell altogether and lock in profits, the Bollinger Band analysis which has been working well for the S&P 500 daily (see my video recaps) since May is significant.
As you can see on the daily chart of Netflix, price has been “riding along” the upper Bollinger Band, a sign of impressive strength. To not see an immediate price reaction to it (with an initial target of the “middle Bollinger Band,” which would be the 20-day moving average on this daily chart), is thus far bullish. At some point, the stock will move off the upper Band and cool down for a bit. In and of itself, that is healthy, as long as it remains near the upper Band and does not sink down to the lower one quickly.
A weekly close above $248.85 and, psychologically-speaking, $250, is encouraging for an eventual run back to prior $304.79 highs from 2011. But earnings are approaching on July 24th, so I will continue to trade around the core.
Barring a dramatic fade, the stock heads into the end of this week acting like a marquee leader that is not abnormally-extended on longer-term timeframe.
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