Netflix Staggers as the Nasdaq SoarsThe Nasdaq-100 hit a nine-month high yesterday, but one prominent name has been left behind: Netflix.
The first pattern on today’s chart is the series of lower highs since early February. (Marked with white arrows.) This demonstrates a lack of relative strength when compared to the broader index.
Second, consider the closing lows of February 10 and April 12. NFLX subsequently rebounded to both levels but failed to hold. Has old support become new resistance?
Third, the stock has been unable to recover from a bearish price gap following its last quarterly report on April 18.
Next, it just completed an inside week barely positive. Such tight price action may suggest it’s getting ready to move.
Finally, the lower study includes our 2 MA Ratio custom script. It recently turned red, meaning the 8-day exponential moving average (EMA) has dipped below the 21-day EMA. That’s a potential sign of a bearish short-term trend.
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