Netflix (NFLX) may be one of those stocks you'd like to acquire on the recent rebound. In the last month the stock had 10 new lows and was 17.32% off its recent high. This is a stock with double digit projections for increases in sales and earnings and that alone should put it on your watch lists.
The recent hourly price action has been swift:
Barchart technical indicators:
- Barchart 56% overall technical sell signal is beginning to weaken
- Trend Spotter sell signal is also weakening
- The stock had 10 down days and was 17.32% off its recent high this last month
- The Relative Strength Index is 38.85%
- Recently the stock traded at 240.55 which is below its 50 day moving average of 265.69
- Barchart computes a support level at 231.05 and the stock seems to be moving away from that point today
Summary: Although the projections for Netflix (NFLX) sales and earning increases are double digit the high P/E ratio means that you are buying growth at a pretty healthy premium. If in the next few day the stock takes a dip you might want to acquire a few shares but I wouldn't take this a major purchase, a price under 237.50 might be OK.
Jim Van Meerten is a Marketocracy Master
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