Netflix Inc Stock Code NFLX.NAS
Outlook
We had picked this stock on 30th April for a short sell and our wealth team has come up with a short idea as well on 9th of May. One of the reasons for the short idea on Netflix was the increasing competition in streaming space with companies like Disney and NBC, which used to cooperate with Netflix, now getting into the space as competitors. It will be hard for Netflix to complete against Disney’s strong content. Price has dropped below the cloud in its continuing decline. This is another reason for us to be bearish. Both Base and Conversion lines are about to have a bearish crossover and price is about to break a recent low. MACD has turned bearish and is declining. Price could be going down to a gap support at $302 or Fibonacci 50% correction point at $308.
Strategy
$354.00 Sell
$308.00 Price Target
$387.20 Risk Management Stop
4 weeks Trade Duration
Watt Disney Co Stock Code DIS.NYS
Outlook
Price rallied to a high of $142.37 after announcement of entry into the streaming space. Together with the overall market condition, price has dropped lower to $130. There could be more downside movement as MACD has not turned around as yet. MACD’s trend is still bullish and this decline could be corrective. Price has not closed a big gap that was opened on 12th April. As long as price stays above the low point of the gap at $118.02, the trend is bullish.
Strategy
$126.10 Buy
$142.35 Price Target
$117.80 Risk Management Stop
4 weeks Trade Duration
