Netflix & Consolidate

By Bennett Tindle October 20, 2020

Netflix has had its fair share of attention as of recent, including some not-so-favorable attention in regards to a recent, highly controversial movie it added to the network. This afternoon Netflix kicked off what should be a very exciting next few weeks of earnings and elections, posting its largest quarterly miss since going public back in 2002! Revenue came in better than expected, however earnings per share was a miss, as well as subscriber additions which has historically been a very key metric for the company. In addition to the fundamentals, we like to dive into current price action to gauge what the ‘hard-right-edge’ of the chart is telling us. Often times current price action is your best indication of future price action, and more importantly investor sentiment! And from a technical, hard-right-edge perspective, the uptrend in Netflix is still well intact. In fact we are simply consolidating in the middle of the uptrend channel on the weekly, and provided we hold $458, there is still plenty of upside potential left in this momentum name!

Elliott Wave Wednesday