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JimVanMeerten (56.73)

Netflix buy signals



August 17, 2011 – Comments (0) | RELATED TICKERS: NFLX

Complete article and Graphs

Netflix (NFLX) may be one of those stocks you'd like to acquire on the recent rebound.  In the last month the stock had 10 new lows and was 17.32% off its recent high.  This is a stock with double digit projections for increases in sales and earnings and that alone should put it on your watch lists.

Barchart technical indicators:

1 - Barchart 56% overall technical sell signal is beginning to weaken

2 - Trend Spotter sell signal is also weakening

3 - The stock had 10 down days and was 17.32% off its recent high this last month

4 - The Relative Strength Index is 38.85%

5 - Recently the stock traded at 240.55 which is below its 50 day moving average of 265.69

6 - Barchart computes a support level at 231.05 and the stock seems to be moving away from that point today

Summary:  Although the projections for Netflix (NFLX) sales and earning increases are double digit the high P/E ratio means that you are buying growth at a pretty healthy premium.  If in the next few day the stock takes a dip you might want to acquire a few shares but I wouldn't take this a major purchase,  a price under 237.50 might be OK.

Jim Van Meerten is a Marketocracy Master

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