Hi Traders! Netflix forecast update and follow up is here. On June 18th I shared this Technical Analysis – Netflix Short Term Forecast in my blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
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Now let’s summarize the idea first:
Netflix D1(Daily) Chart Analysis – Bullish Channel, Parabolic Sar
On the daily chart, the price is moving inside a bullish channel, this channel is formed by the highs and lows reaching similar resistance and support zones. The price which is respecting these two zones so far has currently reached above the middle of this channel after bouncing from the bottom. The price still has room higher towards the top of this channel. In addition to this based on the Parabolic Sar the dots are below the price which we may consider as evidence of bullish pressure. Also, there are no signs that show the trend is over yet. We may now move down to lower timeframes and see if we can find evidences supporting this bullish view.
Netflix H4(4 Hours) Chart Analysis – ADX Indicator, No Opposite Signs
Looking at the H4 chart we could see that the ADX indicator gave a bullish signal at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as evidence of bullish pressure. Also, there are no evidences that show the trend is over on the H4 chart as well. So the bottom line here is that the H4 chart has evidences supporting the bullish view and we may now move down to the H1 chart and see if we can find evidences supporting this bullish view.
Netflix H1(1 Hour) Chart Analysis – Bullish Trend Pattern, ADX Indicator
On the H1 chart, the price which is moving higher has created a bullish trend pattern which we may consider as evidence of bullish pressure. In addition to this the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as evidence of bullish pressure. Also, there are no evidences that show the trend is over on the H1 chart as well. So based on this my short term view is bullish here and I expect further continuation higher towards the top of the daily bullish channel. Buy retraces with bullish evidences would be my plan here.
Netflix H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my view was bullish here and I was expecting retraces and further continuation higher. The price moved perfectly as per my plan on the H1 chart, the retrace that I was looking for happened and then the price moved higher providing an amazing move to the upside. Currently, we have a potential bearish divergence in play, this is something that we definitely need to pay attention to. So if you are still involved in the buys then this is a very important place to consider and manage your trade (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
As traders we should always follow the facts, it doesn’t matter what view you had yesterday, what matters is what happens in the market today because the market is dynamic and it doesn’t necessarily have to agree with the way you see it. As long as the market follows my ideas and validates my setups I can trade and if it doesn’t switch, have a different read and turn around when required.
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