After the close on Wednesday, Netflix (NFLX) topped revenue and earnings expectations and promptly rose to all-time highs. NFLX had been consolidating in bullish sideways fashion for over one year following its prior uptrend. Volume today is extremely heavy suggesting accumulation and, in my opinion, likely higher prices ahead. The close today will be important to determine appropriate entry points. A solid finish would indicate today's open to be a solid gap support level, or 532.00. Failing to hold that level on the close, however, would potentially set up NFLX for two possible levels of support - at price support at 486.30 and the bottom of gap support at 475.46. Take a look at the chart:
Happy trading!
Tom
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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