Netflix, Inc. (NFLX) received a fair amount of free advertising during the 92nd Oscar presentations Sunday evening. One Real Money subscriber asked today what I currently thought of the Netflix charts.
I last covered NFLX on Jan. 23, but a fresh look is always a good idea.
In the daily bar chart of NFLX, below, we can see that prices made a low and turned higher in late September ahead of the early October turn up for the broader market. It pays to watch when a stock turns up or down ahead of the broader market.
Prices are trading above the rising 50-day moving average line and above the bottoming 200-day moving average line. At the end of January, we can see that the 50-day average line crossed above the slower-to-react 200-day line for what is commonly called a golden cross. This mechanical buy signal has a mixed record but can be successful in long-trending markets.
The daily On-Balance-Volume (OBV) line made its low in late September and has worked higher telling us that buyers of NFLX have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator turned bullish in early November and it is still positive. Prices have pushed more than halfway into the resistance from earlier in 2019 and that increases the odds that prices can eventually push all the way through.