Netflix Inc. (NFLX) has been weak in recent sessions. The shares have made a new low down for this month Thursday and have been trading below the cresting 50-day moving average line.
Should we get cautious or defensive on NFLX? Let's subscribe to a few charts.
In the daily bar chart of NFLX, below, we can see that the shares made peaks in July and September. A close below the August lows will allow technicians to talk about a double top formation.
The On-Balance-Volume (OBV) line has been stalled since its April high but stands at the bottom end of its six month's trading range. The Moving Average Convergence Divergence (MACD) oscillator has moved below the zero line for a sell signal.