Netflix Technical Analysis (NASDAQ:NFLX)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. The NFLX stock chart pattern can give those who understand technical analysis an indication of which way NFLX stock is headed, but cannot predict with 100% certainty as to what can happen to the Netflix stock price.
You can view Simple Moving Average - SMA 20 day, 50 day & 100 day, Exponential Moving Average - EMA 20 day, 50 day & 100 day charts, and Bollinger Bands for Netflix. Technical analysis uses an approach for Netflix stock analysis that does not care for the fair value of a company but uses price and volume data only.
Netflix Moving Average
Moving averages show the NFLX stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Netflix are mostly signals of long term trends and will help long term traders.
Netflix Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the NFLX stock. Currently the stock price of $285.93 is in the upper range of Netflix bollinger bands.
Netflix Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Netflix MACD indicator is below 0 indicating a bearish trend.
Netflix Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of NFLX stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.