Don't Ignore This Chart!

Netflix (NFLX) Impresses With Blowout Earnings

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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

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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