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Netflix

Market Opportunities - 07/10/2020

07 October, 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 Tuesday, October 06, Netflix share price fell more than $15 or more than 3% along with all US stock markets, due to President Trump called off stimulus talks between Republicans and Democrats until after the November election.
  • In a later tweet, after the stock market has been closed, President Trump wrote that a major economic stimulus will come after elections, which increased investors sentiment and pushed US futures higher this morning.
  • According to the Technical analysis, stock price managed to remain above the positive trend line and all three major Moving averages (20-day, 50-day and 200-day). During last month, the stock price fell more than 20% but it didn’t fall below the 200-day Moving average, finding strong support around $470. In the same time the daily Relative Strength Index bounced back above breakeven point of 50, indicating that the price is likely out of corrections with strong support to go up to the level of 70. If the stock price manages to stay above the 20-day Moving average, which can be considered as a first support level, the price may go up toward Resistance 1 level of $527.

Netflix, October 07, 2020
Current Price: 505.0

Netflix

Weekly

Trend direction

UP

Resistance 3

571.0

Resistance 2

549.0

Resistance 1

527.0

Support 1

483.0

Support 2

461.0

Support 3

439.0

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 $

66,000.00

44,000.00

22,000.00

-22,000.00

-44,000.00

-66,000.00

Profit or loss in €**

56,003.39

37,335.60

18,667.80

-18,667.80

-37,335.60

-56,003.39

Profit or loss in £**

50,857.25

33,904.84

16,952.42

-16,952.42

-33,904.84

-50,857.25

Profit or loss in C$**

87,569.46

58,379.64

29,189.82

-29,189.82

-58,379.64

-87,569.46

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 10:20 (GMT+1) 07/10/2020
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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