NETFLIX INC (NASDAQ:NFLX) may be ready to breakout.

Our stockscreener has identified a possible breakout setup on NETFLIX INC (NASDAQ:NFLX). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:NFLX for potential opportunities.

Zooming in on the technicals.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to NFLX. In the last year, NFLX was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that NFLX is one of the better performing stocks in the market, outperforming 92% of all stocks. We also observe that the gains produced by NFLX over the past year are nicely spread over this period.
• NFLX is one of the better performing stocks in the Entertainment industry, it outperforms 88% of 72 stocks in the same industry.
• NFLX is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so NFLX slightly outperforms the market at the moment.
• In the last month NFLX has a been trading in the 854.50 - 1045.00 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of NFLX contains the most current technical analsysis.

Why is NFLX a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NFLX has a 7 as its setup rating:

NFLX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. We notice that large players showed an interest for NFLX in the last couple of days, which is a good sign.

How can NFLX be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NFLX and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.