Technical Pulse: Netflix Inc December 7, 2021 729

 

Netflix Inc (US: NFLX) Technical price action indicates a potential return after the fulfilment of the double top formation in mid-November 2021:

 

  1. The bullish harami pattern was seen within the immediate support zone at US$601.29-US$616.74. Furthermore, the harami pattern is seen rebounding at the 161.8% extension of the previous double top formation, indicating a possible strong reversal ahead.
  2. RSI indicates a rally after dipping into the oversold region. Should it successfully cross above 40, the bullish upside will be confirmed.

 

 

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*Price remains in a downtrend as displayed by Ichimoku. Also, neckline resistance at US$642.11 must be broken to further confirm the upside.

 

CHART LEGEND

 

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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