Netflix continues to deliver content to homes and profits to investors. After reporting good numbers vs. expectations, Netflix popped up to new highs. It wasn't all scrolling credits for the company as the stock sold off continuously on Thursday after the huge gap to new highs. This is a weekly chart that looks good as long as the stock holds the breakout above $130.
The weekly chart does not show todays selling, so I'll use a 1-month chart of 60-Minute candles. Considering the good report, there were a lot of sellers taking profits.
In the short term this might be overdone. We also have more volatility from Options Expiration on Friday. While the stock still looks great, there are short term reasons to be cautious.
Greg Schnell, CMT, MFTA.
About the author:Greg Schnell, CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).