Trading Roundup: Netflix – From DVDs to TV Shows and Oscar Material

November 17, 2017 13:13

Netflix, Inc. is paramount to fans of TV series and movies worldwide. Premiere after premiere, hit after hit, the company attracts more and more viewers. If you haven't heard of TV shows such as Stranger Things, House of Cards, Orange is the New Black, or Narcos, you simply must give yourself the gift of discovering them! ...and while you're at it, why not check out the share CFD price?!

Netflix in a Nutshell

Netflix (NFLX) is the first-of-a-kind digital streaming service that started out a decade ago, offering customers DVD rentals by mail for a modest monthly fee. Having established a position in the business, the company then revolutionised the entire game, bringing TV and cinema directly to our computers.

The global expansion of the digital streaming guru didn't stop there. Netflix went further to create its very own, impressive and critically acclaimed content. The network's latest movie – Mudbound – released on Netflix and in cinemas today, is seen as a potential candidate for the upcoming Oscars.

Ten years later, Netflix is facing a bunch of competitors of all shapes and sizes, but the company's value still proves to be sustainable. It's the superb quality of the content and the enormous base of subscribers that help Netflix maintain its stable position. Growth, a metric that is always promoted, is never continuous. Growth counters sustainability, but in the long term, the latter is more important in determining true value.

NFLX Analysis

Source: NFLX, Daily Chart, Admiral Markets MT4SE, Dec 2016-Oct 2017

The NFLX has been in a steady uptrend ever since June 2016. The stock has been making higher highs and lower lows on a daily timeframe indicating a strong bullish pressure. We can also see a bullish gap that has been closed but it indicates a strong bullish continuation. Despite the huge success of its flagship series – Stranger Things – the stock seems to make gains from other things as well. According to the source we can see that some of the other original content shows, including the recently released Mindhunter and the second season of The Crown (Dec. 8) might prove to be the "prime-mover catalysts" for fourth-quarter net subscriber adds.

Technically, 190.30 is a support now, which is a strong order block and double top so we might see a jump towards the M H3 pivot 203.87 first. If 190.30 breaks, watch out for POC zone (Q H1, M L4, EMA89, 78.6). The zone is 181.20-185.11 where we might see another push to the upside. Levels to watch for are 203.87, 206.20, 211.42 and 226.82. The uptrend is huge and it would take a lot of negativity toward the company itself for the trend to change. At this point, going long on retracements as shown here could be the way to go.

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Olga & Nenad

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