Technical Update - Netflix. Catching a falling knife?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: Well, the knife has already fallen, but it is not unlikely to fall further. Bottom fishing carries high risk and after such a massive sell-off Netflix has experienced high volatility should be expected
Daily chart showing Divergence on RSI i.e. the RSI value after yesterday’s sell off is higher than the RSI from 26th January low. Divergence is usually a sign of a trend is weakening. However, continued selling pressure will push the RSI lower meaning RSI is not currently indicating down trend is about to be exhausted. Netflix is likely to be depressed for quite some time.
Weekly chart shows Netflix is currently trading below the support area from December 2018. If the week closed below $231.23 expect further decline. Next support at around $195.
However, if on the other hand Bottom Fishers manage to lift the beaten down stock to close the week above $231.23 we could see a rebound to around 256.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.