Optimized Swing Trading: NFLX, 6.7% Returns
Unlocking Profitable Trends with Swing Trading: A Case Study on NFLX
As an integral part of the financial markets, swing trading presents a potent strategy for capitalizing on short-term price changes. By leveraging technical analysis (TA), investors can maximize their profits through efficient timing and selection of investment opportunities. In this context, the swing trading approach to several popular stocks such as NFLX, has garnered considerable interest among the investor community.
One such intriguing swing trading opportunity is Netflix Inc. (NFLX), a widely recognized entertainment titan with its vast streaming platform. Its performance in the swing trading realm has been commendable, generating a notable return of 6.70%. NFLX's swing trading journey offers a unique perspective on how TA can facilitate effective decision-making in the volatile landscape of financial markets.
A critical factor behind the success of swing trading in NFLX has been the utilization of the Aroon Indicator. A powerful tool in TA, the Aroon Indicator helps identify whether a stock is trending, the strength of the trend, and potential reversals. For NFLX, the Aroon Indicator signals an upward move is likely.
This upward trend projected by the Aroon Indicator suggests the potential for investors to capitalize on NFLX's next swing. It becomes more pertinent when one considers NFLX's history of resilience in volatile market conditions and its persistent trend of bouncing back from temporary dips.
Swing traders employ such indicators to time their entry and exit points with the goal of taking advantage of price swings. In NFLX's case, the Aroon Indicator has proven to be a reliable tool for predicting upcoming price movements, hence contributing to the recent swing trading gains.
The practice of swing trading, when combined with effective TA tools like the Aroon Indicator, can unlock significant profit-making opportunities. NFLX's recent performance serves as a robust testament to this approach, yielding a 6.70% return for swing traders. Such trends offer promising prospects for investors willing to delve into the dynamic world of swing trading, leveraging the right mix of technical analysis tools and strategies.
NFLX's Stochastic Oscillator is remaining in oversold zone for 6 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NFLX advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
NFLX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 13, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on NFLX as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NFLX turned negative on September 13, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
NFLX moved below its 50-day moving average on September 13, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NFLX crossed bearishly below the 50-day moving average on September 18, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NFLX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for NFLX entered a downward trend on August 29, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NFLX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.369) is normal, around the industry mean (4.529). P/E Ratio (40.486) is within average values for comparable stocks, (76.003). Projected Growth (PEG Ratio) (1.395) is also within normal values, averaging (1.712). Dividend Yield (0.000) settles around the average of (0.062) among similar stocks. P/S Ratio (5.339) is also within normal values, averaging (110.237).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NFLX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of online movie rental subscription services
Industry MoviesEntertainment
NFLX and
Correlation & Price change
A.I.dvisor indicates that over the last year, NFLX has been loosely correlated with NWSA. These tickers have moved in lockstep 53% of the time. This A.I.-generated data suggests there is some statistical probability that if NFLX jumps, then NWSA could also see price increases.
| Ticker / NAME | Correlation To NFLX | 1D Price Change % | ||
|---|---|---|---|---|
| NFLX | 100% | +1.31% | ||
| NWSA - NFLX | 53% Loosely correlated | +0.56% | ||
| NWS - NFLX | 52% Loosely correlated | +0.49% | ||
| DIS - NFLX | 48% Loosely correlated | -0.30% | ||
| ROKU - NFLX | 45% Loosely correlated | -1.04% | ||
| WBD - NFLX | 40% Loosely correlated | -3.96% | ||
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