With NFLX hitting an all time high, is this stock too overbought? Will it continue to move higher? To answer that, we will need to consult the charts.
As we all know, Netflix has been expanding rapidly all over the world. Even in the South East Asian country of Malaysia, Netflix has made its presence felt.
With the growth of internet speed, the delivery of Netflix's content is becoming easier and easier. With global internet penetration set to increase over the years, Netflix has a huge potential customer base. Which is why I believe that Netflix has the opportunity to go higher.
The above is the daily chart of Netflix. NFLX had a really nice run recently and the uptrend is still very strong. NFLX broke above a downtrendline and above the 50 MA. This help to send it higher.
There is support around $200 and if there is any correction to that area, traders can buy the dips there.
The weekly chart of NFLX above show that the stock is also in a very strong uptrend. Notice how the stock has been staying above the rising 20 MA most of the time.
There is also ample layers of support below. This provides a lot of safety to the investors of Netflix. Since we are also in a weekly uptrend, any weakness and dips are excellent buying opportunities.
To have a short term outlook, we now switch to the 60 min chart of NFLX. The stock is in a very nice 60 min uptrend. As long as it stays above the rising 60 min 20 MA and the 50 MA, we should continue to be bullish on this stock.
Some caution is needed if the stock drops below the 60 min 20 MA. If it drops below the 60 min 50 MA, traders should be extra cautious.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
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