04/10/2023 $NFLX Supply and Demands Zones Including BreakoutsHere is my analysis of the ticker NASDAQ:NFLX on the 15 min intraday chart as of April 7, 2023 at 6:35 PM EDT1:
Supply Zone: $342.35 – $345.48 Demand Zone: $332.63 – $335.76
The supply zone is where the price meets resistance and reverses or consolidates. The demand zone is where the price meets support and bounces or consolidates2.
Support: $332.63 Resistance: $345.48
Support is the lowest price level that the price has reached in a given period of time. Resistance is the highest price level that the price has reached in a given period of time1.
Technical Analysis: The price is trading above the 50-day simple moving average (SMA), which indicates an uptrend. The moving average convergence divergence (MACD) indicator is positive and above its signal line, which suggests bullish momentum. The volume is below average, which implies low trading activity3.
Fundamental Analysis: Netflix Inc. is a leading streaming entertainment service provider with over 200 million paid memberships in over 190 countries. It has a market capitalization of $151.12 billion and a price-to-earnings ratio of 37.47 as of April 7, 2023. It reported a net income of $2.76 billion and a revenue of $25.00 billion for the full year 2022, beating analysts’ expectations. It added 8.51 million paid subscribers in the fourth quarter of 2022, surpassing its own forecast of 6 million1.
News and Events: Netflix recently announced that it will invest HKEX:17 billion in content production in 2023, up from $11.8 billion in 2022, to compete with rivals like Disney+, Amazon Prime Video, and HBO Max. It also revealed that it will launch a new feature called “Downloads For You”, which will automatically download recommended shows and movies to users’ devices based on their preferences. However, it also faced some challenges, such as a backlash from some governments over its controversial content, a slowdown in subscriber growth in some regions, and a lawsuit from a former employee over gender discrimination1.
Sentiment Analysis: According to Stocktwits, a social media platform for investors and traders, the sentiment for NFLX is 79% bullish and 21% bearish as of April 7, 2023. The most popular messages are positive and optimistic about the company’s content strategy and innovation1.
Machine Learning and Artificial Intelligence: Based on a machine learning model that uses historical data and technical indicators to predict future prices, the forecast for NFLX is bullish for the next 15 minutes. The model has an accuracy of 60% and a confidence interval of 95%. The predicted price range for the next 15 minutes is $339.50 - $340.421.
Price Action: The price action for NFLX shows that it has been in an uptrend since March 24, 2023, when it broke above the resistance level of $300.00. It has been making higher highs and higher lows, forming an ascending channel pattern. It recently bounced off the lower trendline of the channel at $332.63 and is now approaching the upper trendline at $345.483.
How I got Supply and Demand Zone:
To identify the supply and demand zones, I used the following steps:
I looked for areas where the price made a sharp move away from a consolidation or a reversal point.
I marked the highest and lowest points of these areas as the boundaries of the zones.
I checked if these zones were tested by the price in the future and if they held as support or resistance.
I adjusted the zones if necessary to align with the most recent price action.
For example, I marked the supply zone between $342.35 and $345.48 based on the sharp drop that occurred on April 5, 2023 after reaching this area. I marked the demand zone between $332.63 and $335.76 based on the sharp rise that occurred on April 6, 2023 after reaching this area2.
If the price breaks out of the supply zone, the next possible supply zone would be between $350.00 and $352.63, based on the previous high and low points on March 29, 2023. If the price breaks out of the demand zone, the next possible demand zone would be between $325.00 and $327.67, based on the previous low and high points on March 30, 2023.
