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Technical Update - Netflix breaking bullish out of months long side ways range. Will it stay up and can it move higher?

Equity 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Netflix is set to open above weeks long trading range continuing its rebound offs low. If the share price can stay above $252 there is more upside in the horizon

Netflix is up 12% trading around $271 Pre-Market better-than-expected earnings and subscriber announcement last night.
That means that Netflix is set to open above the range between 211 and 252 the share price has been trading in for the past couple of months.
RSI will break back above 60 supporting the bullish move suggesting the4r could be more upside.
the 200 Simple Moving Average (SMA) is coming down putting a damper on the upside but there should be potential to around 278.70 which is 1.618 projection of the top-to- bottom of the range area. But there could be room for more, 200% or 2.0 projection of the trading area is at 292.25, overshooting the falling 200 SMA.
If Netflix cannot hold up and slides back to close below the upper band of the range i.e., below 252 there is a great risk of the share price will also test the lower band and support at around 211.

NFLX D 19oct
Source: Saxo Group

Medium- to Longer-term Netflix is in rebound mode from its collapse earlier this year. There seems to be solid ground at the lows at around 162.71.
Lower rising trendline could be the base of a rising channel. The upper rising trendline is shifted parallel from the lower one to indicate a possible pattern.
If Netflix can stay above the above-mentioned trading range i.e., stay above 252 there is not strong resistance before around 338.72.
If Netflix slides back into the sideways trading range, it is set to break out of, AND closes below 211 (low of the range) pushing the weekly RSI below its rising trendline, Q2 lows at around 162.71 is likely to be tested.

Conclusion: If Netflix stays above $252 the uptrend is intact

NFLX w 19oct
Source: Saxo Group

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