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Netflix

Market Opportunities - 17/09/2020

17 September, 2020

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

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
  • On Wednesday, September 16, Netflix share price fell more than $20 after it reached $503 in early session due to FED chairman Jeromy Powel dovish stands over the US monetary policy and lack of any information about new stimulus measures. On the other hand, this steep price drop can provide good trade opportunities for investors in this stock.
  • Despite yesterday and last week 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.
  • Technically, according to the Daily chart, stock price manages to remain above key 200-day Moving averages finding strong support at $470. If the stock price manages to stay above the 200-day Moving average and returns above $490, the price may go up to the Resistance 1 level of $500.

Netflix, September 17, 2020
Current Price: 477.00

Netflix

Weekly

Trend direction

UP

Resistance 3

546.00

Resistance 2

523.00

Resistance 1

500.00

Support 1

454.00

Support 2

431.00

Support 3

408.00

Example of calculation base on weekly trend direction for 1.00 Lot*

Netflix

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

69,000.00

46,000.00

23,000.00

-23,000.00

-46,000.00

-69,000.00

Profit or loss in €**

58,459.71

38,973.14

19,486.57

-19,486.57

-38,973.14

-58,459.71

Profit or loss in £**

53,258.00

35,505.33

17,752.67

-17,752.67

-35,505.33

-53,258.00

Profit or loss in C$**

91,154.52

60,769.68

30,384.84

-30,384.84

-60,769.68

-91,154.52

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 10:20 (GMT+1) 17/09/2020
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

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