Shares of Netflix ( NFLX) are trading higher Thursday as video streamer adds more than double the expected subscribers. The stock price was about 6% higher on the day but that may not be enough to alter the trend. Let's check.
In this daily bar chart of NFLX, below, I can see some bottoming price action around $180 from May and into July but the rally from that low fizzled out in early December. Prices have pulled back to and have broken below the rising 50-day moving average line. NFLX is above the 200-day moving average line which has just started to bottom out.
The trading volume does not show any expansion to give buyers confidence in the price rise.
The On-Balance-Volume (OBV) line has stalled since late October and the Moving Average Convergence Divergence (MACD) oscillator is back down to the zero line.
In this weekly Japanese candlestick chart of NFLX, below, I see a mixed picture. Prices are above the 40-week moving average line which is still showing a negative slope.
The weekly OBV line is weakening and the recent candles are red (bearish). The MACD oscillator has been narrowing towards a downside crossover.
In this daily Point and Figure chart of NFLX, below, I can see a downside price target in the $231 area.
In this second Point and Figure chart of NFLX, below, I used weekly price data. Here the software suggests a price target in the $215 area.
Bottom line strategy: A 6% move in a stock catches one's attention but so far it has not meaningfully changed the direction of NFLX.