In October, Netflix (NFLX) took a huge drop after its earnings. I wrote an article to show the big trading range that NFLX traded in and where it might be heading (click here to see the article).
Today, after the market, NFLX jumped +16% on the report that the company added 4.3 million subscribers. Let’s visit the chart again:
NFLX
We can see in this chart that the low end of the trading range is about $320; and, the high end is about $460. There’s a more detailed description in my post from October 2014.
Let’s revisit what happened after Netflix’s earnings in October. NFLX shares opened the day after earnings at around $330 and started to climb. But, soon it met that resistance at $380 (mentioned in October’s post) and stalled. Eventually, it came back down to test the low end of the trading range at $320.
This evening, NFLX zoomed higher to about $405, already above that $380 mark. The next resistance is at about $420. But, in the next few months, NFLX should come back up to test $450-$460, provided that the broader market stays healthy.
Good night and HappyTrading! ™
Comments
Log in or sign up to join the conversation.