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On April 17, 2020 (US$422.96), we identified a large wedge pattern (dotted lines) and suggested that a rise above ±US$400 would signal a breakout. Following our report, Netflix Inc. (Friday’s close US$690.31) reached a high of US$575.37 for a 36-per-cent appreciation in about three months (A).

Subsequently, the stock settled in a horizontal trading range mostly between US$465 and US$575 (dashed lines). The recent rise above this range confirmed the breakout and the start of a new uptrend toward higher targets (B).

There is good support near US$590-$600; only a sustained decline below the 40wMA (currently near US$550) would be negative.

Point & Figure measurements provide a target of US$700. The large trading range (dashed 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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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 07/11/24 1:46pm EST.

SymbolName% changeLast
NFLX-Q
Netflix Inc
+1.64%793.01

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