• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Netflix Looks Vulnerable in the Weeks Ahead

The buying interest could be waning.
By BRUCE KAMICH
Nov 30, 2020 | 03:38 PM EST
Stocks quotes in this article: NFLX

Shares of Netflix (NFLX) continue to look weak. Dips and declines in the $480-$460 area over the past five months have encountered buying support but the buying interest could be waning, leaving the shares vulnerable to a deeper decline.

We looked at the charts of NFLX on Nov. 4 we wrote that, " We were cautious in our Oct. 20 review and we continue to be cautious until the charts tell us otherwise."

In the updated daily bar chart of NFLX, below, we can see that the shares have been unable to start or restart a sustained advance. NFLX is trading between the flat to declining 50-day moving average line while the rising 200-day moving average line is getting closer.

The trading volume has declined from late October and the On-Balance-Volume (OBV) line has been making lower highs since early July suggesting that sellers of NFLX have been capping rallies the past five months. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory but might generate a cover shorts signal.

 
 
In the weekly bar chart of NFLX, below, we can see a less-than-robust picture. Prices are in a sideways trend and approaching the rising 40-week moving average line. A test of the 40-week average looks likely in the weeks ahead.
 
The weekly OBV line shows a decline from May which suggests that sellers have been more aggressive for several months. The MACD oscillator crossed to the downside in August giving us a take profits sell signal.
 
 
In this daily Point and Figure chart of NFLX, below, we can see a potential downside price target in the $406 area. 
 
 
 
Bottom-line strategy: I am not sure what news might turn NFLX lower with the next quarterly earnings report a ways off, but the chart is and has been weakening for several months. Avoid the long side.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Media | Movies | Television Production/Distribution

More from Stocks

Cord-Cutting FuboTV and Advertising Platform PubMatic Are Not Buys Here

Bruce Kamich
Jan 21, 2021 2:59 PM EST

Our look at the stocks of both FUBO and PUBM.

Hyliion Should Keep Truckin'

Timothy Collins
Jan 21, 2021 2:49 PM EST

I see a good trade down the road in this commercial fleet alternative-power truck name.

Jim Cramer: You Just Won Powerball, Now What?

Jim Cramer
Jan 21, 2021 2:24 PM EST

Remember, you only need to get rich once.

Aim High With This Defensive Dividend Stock

Bob Ciura
Jan 21, 2021 1:40 PM EST

Lockheed Martin is a classic defense stock that also gives investors an offensive position.

A Day for Resets

James "Rev Shark" DePorre
Jan 21, 2021 1:08 PM EST

I'm more inclined to do strategic buying in this sort of market action rather than more aggressive selling.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:16 AM EST CHRIS VERSACE

    Worst Stocks to Buy for the Biden Presidency

    Biden's take on the minimum wage, likely moves on ...
  • 08:35 AM EST GARY BERMAN

    Thursday Morning Fibocall for 1/21/2021

    SPX (Long-Term View) The 1/20/21 NEW high @ 3859...
  • 11:38 AM EST CHRIS VERSACE

    Best Stocks to Buy for the Biden Presidency

    President-elect Biden's massive stimulus plan, int...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login