Thinking About Riding the NFLX Downtrend? Read This First

The Hourly View for Netflix

  • Currently, NFLX’s price is up $1.4 (0.26%) from the hour prior.
  • This move is a reversal from the hour prior, which saw price move down.
  • If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 20 hour timeframe.
  • Price action traders may also wish to note that we see a doji candlestick pattern on Netflix. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
  • The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

Netflix’s hourly price chart is shown below.

NFLX

The Daily View for Netflix

  • Currently, NFLX’s price is down $-3.62 (-0.67%) from the day prior.
  • It’s been a feast for bears operating on the daily timeframe, as Netflix has now gone down 8 of the past 10 days.
  • As for the trend on the daily timeframe, we see the clearest trend on the 50 day timeframe.
  • The moving averages on the daily timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.
  • Divergence alert: Trend in NFLX’s price and its RSI are diverging. NFLX’s price is declining faster than its RSI.

Below is a daily price chart of Netflix.

NFLX

Featured Netflix Idea From TradingView

Below is a trading comment entitled Netflix plays Squid Game with investors in the past 2 months! you may find interesting:

25% decline in less than 2 months for NFLX is not what many people expected, but option data suggest more volatile days ahead.Looking at the options date for the next 4 weeks, you can see 1.37 Put/Call ratio which is very high and indicate more bearish momentum!Option wall:400-580Maxpain: 550 Be careful with the earning in the next 8 days!The big question is if it first move toward 580 and then slips down toward 400 zone or the opposite???Since I do not have the an…

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