On April 17, 2020 (US$422.96), we identified a large wedge pattern (dotted lines) and suggested that a rise above ±US$400 would signal a breakout. Following our report, Netflix Inc. (Friday’s close US$690.31) reached a high of US$575.37 for a 36-per-cent appreciation in about three months (A).
Subsequently, the stock settled in a horizontal trading range mostly between US$465 and US$575 (dashed lines). The recent rise above this range confirmed the breakout and the start of a new uptrend toward higher targets (B).
There is good support near US$590-$600; only a sustained decline below the 40wMA (currently near US$550) would be negative.
Point & Figure measurements provide a target of US$700. The large trading range (dashed lines) supports higher targets.
stock
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.