On Friday, we looked at a Daily Price Chart of eBay, Inc., noting that the stock has been making a series of higher highs and higher lows.
Today we’re looking at a 10-Month Simple Moving Average chart for Netflix, Inc. (NASDAQ: NFLX).
Netflix, Inc. provides subscription streaming entertainment. It offers TV series, documentaries, and feature films across various genres and languages.
The company provides members the ability to stream content through a host of internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices.
Now, below is a 10-Month Simple Moving Average chart for Netflix, Inc.
Back in January, the NFLX 1-Month Price crossed above the 10-Month SMA indicating NFLX is on a PowerTrend ‘buy’ signal (circled).
Guess what happened next…
Sure enough, prices continued to rise.
Since the PowerTrend ‘buy’ signal occurred for the stock back in January – when the stock was around $345.09 – the stock has seen a 31.5% increase.
Now, as you can see, the 1-Month MA is still above the 10-Month SMA. That means the bullish trend is still in play!
This bullish price trend makes NFLX a good candidate for a call option purchase.
As long as the 1-Month Price remains above the 10-Month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be keeping our eye on this stock as it continues to trend upward.
That way we’ll know the moment the market conditions shift and the stock begins to come back down… offering a better buying opportunity in a bullish market.
Editor, Chart Of The Day