Netflix stock analysis update 2020

Netflix, Inc. is still the number one subscription streaming entertainment service in the world. It keeps getting better and better in a world locked down under the effects of the coronavirus pandemic. Netflix (NASDAQ: NFLX) has broken an all-time high after weeks of having the stock at around $400 per share and is unable to break that price area. Last week Netflix (NASDAQ: NFLX) broke out in a strong bullish move that ended up creating a strong demand imbalance on the weekly timeframe.

NFLX chart new scenario

Netflix (NASDAQ: NFLX) has broken an all-time high after weeks of having the stock at around $400 per share and is unable to break that price area. Last week Netflix (NASDAQ: NFLX) broke out in a strong bullish move that ended up creating a strong demand imbalance on the weekly timeframe.

Netflix price chart analysis

Two weeks ago, it tried to reach the newly created imbalance of around $381 per share, but it just couldn’t, it fell short of pulling back to it, and it might continue to rally high and break an all-time high again. There is a long term long bias, so only buying shares of Netflix stock should be allowed, or even bullish options strategies that are neutral to bullish because that’s what the bigger picture supply and demand trend analysis is telling us to do.

Netflix price action analysis

This is the kind of price action technical analysis you will learn in our trading community, not only for the stock of Netflix (NASDAQ: NFLX). You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with a full or half-time job. You won’t need to stay in front of the computer all day long trying to move price action with your mind. 

Netflix supply and demand imbalances

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.

Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements on the stock of Netflix (NASDAQ: NFLX).

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name, and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

If you want to learn how to trade stocks using our supply and demand trading strategy, join our supply and demand price action course.

There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy Netflix (NASDAQ: NFLX) CFD (contracts for difference) if you are in a country where it’s allowed.