Entertainment services firm Netflix (NFLX) is trading lower Thursday. Is this a "normal" pullback or the start of a larger correction? Reports Thursday point to comments by the CFO that "ads tier are not seen driving revenue in the short-term'.
Let's check out the charts and indicators.
In this daily bar chart of NFLX, below, I can see that prices are pulling back to retest the August low. NFLX is trading below the 50-day moving average line but above the rising 200-day moving average line. The On-Balance-Volume (OBV) line turned sideways in the middle of July. The Moving Average Convergence Divergence (MACD) oscillator is poised to move below the zero line for an outright sell signal.