Netflix uptrend opportunity based On 1.00 Lot Calculation:
- Netflix is one of the few companies in the world whose shares increased during the Coronavirus crisis, hitting all time high $575.17 on July 13 due to increasing number of subscribers during Coronavirus crisis and ‘Stay-At-Home” recommendation in the US and rest of the world.
- During the last eight sessions, Netflix fell seven times, losing more than 12% in its value, primarily due to sharp decline in Hi -Tech companies included in Nasdaq100 index and due to controversial new Netflix streaming “Cuties” which faces same critics in the US. This sharp drop is a very rare situation for Netflix stock price, but on the other hand, it can provide possibilities for investors in this stock.
- Despite this recent price drop, many analysts stay bullish on this stock and increase their price target in the past two weeks, with, according to the Bloomberg, average target price of $511.
- Positive news came out from the US Congress which prepared to unveil a $1.5 trillion bipartisan coronavirus relief legislation on Tuesday. The proposal includes another round of direct checks to Americans, $500 billion for state and local governments and jobless benefits, with spending lasting beyond next January’s presidential inauguration.
- Despite this recent price drop, many analysts stay bullish on this stock and increase their price target in the past two weeks, with, according to the Bloomberg, average target price of $511.
- Technically, according to the Daily chart, stock price manages to remain above key 200-day Moving averages finding strong support at $470. The daily Relative Strength Index bounces back from 39 and continues to rise toward level of 50, which can be considered a pivot point which separates uptrend from downtrend movement. If stock price manages to stay above 200-day Moving average and return above $490, it may go up to the Resistance 1 level of $503.
Netflix, September 15, 2020
Current Price: 483.0
|
Netflix |
Weekly |
|
Trend direction |
|
|
543.0 |
|
|
523.0 |
|
|
503.0 |
|
|
463.0 |
|
|
443.0 |
|
|
423.0 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
Netflix |
||||||
|
Profit or loss in $ |
60,000.00 |
40,000.00 |
20,000.00 |
-20,000.00 |
-40,000.00 |
-60,000.00 |
|
Profit or loss in €** |
50,487.20 |
33,658.13 |
16,829.07 |
-16,829.07 |
-33,658.13 |
-50,487.20 |
|
Profit or loss in £** |
46,544.46 |
31,029.64 |
15,514.82 |
-15,514.82 |
-31,029.64 |
-46,544.46 |
|
Profit or loss in C$** |
78,909.60 |
52,606.40 |
26,303.20 |
-26,303.20 |
-52,606.40 |
-78,909.60 |
* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 14:00 (GMT+1) 15/09/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Senior Account Manager for more details