In 2015 we saw the giant online TV and Movie stream platform Netflix stocks split 7 ways due to the price being too high. 2 years later we have seen this stock gain huge momentum as Netflix does not look like its chilling anytime soon.
Below is the weekly chart for Netflix where we can clearly see the drop in 2015 followed by price consolidating for the majority of 2016.
The daily chart below shows Netflix is in a clear uptrend as it is trading above the 200 Moving Average.
As trend traders we tend to only trade markets where price is above the Moving Average on both the Daily and Weekly timeframe. However due to the high volumes and speculation around this stock it is hard to resist. We expect price to slow down around $270.00 which is at the weekly moving average level.
Remember the key to trading is compounding so keep an eye out on those Price Action patterns discussed in on our education page.