Netflix (NFLX) has been soaring lately on excitement about "Squid Game," the hit series. We last checked out NFLX on Oct. 5 and wrote that traders who are long "can raise stops to $569 from $550. The $690-$700 area is our next upside price target."
Let's see how things are progressing.
In this updated daily bar chart of NFLX, below, we can see that prices have reached the $690-$700 price target zone we put forth a month ago.
Prices are in an uptrend above the rising 50-day and 200-day moving average lines. The trading volume has increased over the past three months telling us that more investors and traders are supporting the advance. The On-Balance-Volume (OBV) line has been strong and this supports the gains we have seen. The Moving Average Convergence Divergence (MACD) oscillator is bullish and pointed higher.
In this weekly Japanese candlestick chart of NFLX, below, we can see that prices are moving up nicely with many white candles and few upper shadows. Prices are trading above the rising 40-week moving average line. The OBV line has been moving up the past six months but it has yet to make a new high like prices have. The MACD, or moving average convergence divergence, oscillator is bullish.
In this daily Point and Figure chart of NFLX, below, we can see a potential upside price target of $834.
Bottom line strategy: Traders who are long NFLX should raise stops to $635 from $569. The $834 area is our next price target above $700.
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