Netflix Inc. (Friday’s close US$422.96) rallied from US$84.50 in July, 2016, to US$423.21 in June, 2018, (A-B) above its rising 40-week Moving Average (40wMA). The stock fell below its average in late-2018 (C) and then settled in a large triangle pattern made up of flat highs and higher lows (dotted lines).
A sustained rise above ±US$400 (D) would signal a breakout from the triangle formation, turn up the 40wMA and provide higher targets.
There is good support near US$300-US$320; only a sustained decline below this level would be negative.
A rise above ±US$400 would signal Point & Figure targets of US$450 and US$480. The large triangle pattern (dotted lines) supports higher targets.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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