Here’s the “N” part of FANG. Netflix (NFLX) works. (September 06, 2016)
NFLX FB AMZN GOOGL NFLX SP-500 NFLX
Today we’re looking at Netflix ( NASDAQ:NFLX ). This stock has been, for a while now, really kind of boring. It’s just been kind of trickling higher; range between here and here, it’s just not doing a whole lot of everything. Well that’s kind of changed today. A big move, almost 3 percent today. The other FANG stocks, Facebook ( NASDAQ:FB ) brokeout, Amazon ( NASDAQ:AMZN ) brokeout, Netflix ( NASDAQ:NFLX ) brokeout, and Google ( NASDAQ:GOOGL ) kind of almost brokeout (it’s still up against resistance but this will probably be going higher anyway). Those stocks are all working. I’m looking at Netflix ( NASDAQ:NFLX ) and this looks like it’s just kind of starting to get good. It’s breaking above (at least closing for a dime anyway), above $100.00, which is a key level thanks to the numeral system we all use, and also the 200-day moving average, which has contained it several times.
The stock has been in this base for quite a while. Look at how tight these Bollinger Bands are, they are very, very tight. So I think this is a trade that can work. I think you can go long Netflix ( NASDAQ:NFLX ) now. There’s over a month to go before the company reports earnings and with the rest of the market poised to move higher I think Netflix ( NASDAQ:NFLX ) is going to be a good trade for you. I think you get long this stock. I would definitely not be holding it if it fell below this 50-day moving average. But frankly, this is a real low-risk buying opportunity, it’s up less than 3 percent today. I think if you are buying this stock now you keep a stop really right down here. You don’t even have to keep it this low; I would say if the stock fell back to $97.00 then it’s right back in the middle of the range; resistance at the 200-day moving average has held, so why be holding the stock? You’re buying the stock here with about a 3 percent risk. That is a trade that I will take any day.
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