Important Stocks To Watch - Breakout Stocks

Long Term Breakouts To Watch

Stocks At 50 MA & 200 MA

Chart Lessons From Netflix's Swing Move

Today we are going to examine why Netflix went up so much after correcting. What are the signs that the chart showed us before it went up? Let us take a look at the charts and learn some valuable lessons.

You can see that NFLX had a nice swing move up recently. One of the reasons why the stock rose is because it formed a bottoming tail pattern. This is a bullish reversal candlestick pattern that often hints of the end of a correction. The bottoming tail also formed at the rising 20 MA as well as price support. 

Besides that, a gap up can act as an area of support. That is why you can often see stock prices correct to gap areas and then reverse back up. Since the stock is in an uptrend and is trading above the rising 50 MA and 200 MA, therefore dips can be bought and you can look for swing trading setups.

When we look at the 60 min chart of NFLX, there were many signs that the stock's correction was ending. First of all, the stock corrected to the rising 60 min 200 MA and formed a 60 min bottoming tail there. Then it broke above a short term downtrend line. It gap up above the downtrend line and this is actually a very bullish pattern.

After that, the stock slowly drifted higher.

The chart above shows the 5 min chart of Netflix. I like to use the 5 min 50 MA as a buy/avoid zone. When it is in the red, we avoid buying the stock. You can see how the stock went back above into the white zone and this told us that the correction was ending.

Notice how NFLX stayed above in the white zone most of the time as it rose back up. This was a time to long the stock by finding continuation patterns.

The chart above shows the 15 min chart of NFLX.

It provided 2 ascending triangles and traders could have bought the stock for a swing trade. It also formed a 15 min box where traders can buy the breakout. At this moment, the stock is still in a 15 min uptrend and traders should continue to be bullish on the stock as long as it stays above the 15 min 50 MA.

  • Help support this page and press the Facebook Like button below. Thanks!

Join Dstockmarket's Facebook Page 

Recent Articles

  1. Stocks To Watch - Breakout Stocks

    Dec 03, 21 09:52 AM

    Here are a list of stocks that have broke out or about to break out. Breakout stocks can often give us a good reward to risk ratio.

    Read More

  2. Stocks At Their 50 MA And 200 MA

    Dec 03, 21 07:22 AM

    Here are a list of stocks that are at their 50 MA and 200 MA. The 50 day moving average and 200 day moving average can be a support area where stocks bounce off

    Read More

  3. US Stock Market Analysis Dec 2021 | Dstockmarket

    Dec 03, 21 05:59 AM

    How will the US stock market work in December? Will there be a rebound? Will the stock market continue to go higher?

    Read More

  4. Technical Analysis Of AAPL : Making Sense Of Apple's Stock Price

    Dec 01, 21 09:24 AM

    Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq.

    Read More

  5. US Stock Market Analysis November 2021

    Nov 30, 21 09:11 AM

    Are the markets going to continue to move higher? Is it in an uptrend or downtrend and where are the support and resistance?

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.