It was not all that long ago when Netflix (NFLX) tumbled sharply in early 2022 as losses mounted, streaming subscriber growth waned and the advertising market weakened. Well, the fundamental situation has changed and fundamental analysts are recommending the stock and raising their price targets.
Let's check out the charts and indicators and see what the technicals are recommending.
In the daily bar chart of NFLX, below, I can see that the shares have more than doubled in the past year. The shares trade above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line shows a rise for the past year even as trading volume has been pretty boring. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of NFLX, below, I can see a promising-looking picture. The shares are in an upward trend and trade above the rising 40-week moving average line.
The trading volume has been more active for the past year. The MACD oscillator is above the zero line and rising -- a bullish setup.
In this daily Point and Figure chart of NFLX, below, I can see that prices reached and exceeded an upside price target in the $415 area.
In this weekly Point and Figure chart of NFLX, below, I can see a potential price target in the $619 area.
Bottom-line strategy: Aggressive traders could go long NFLX on a dip towards $400 area risking to $370 for now. The round number of $500 is my price target for now.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
