Netflix, Inc. provides a subscription streaming entertainment service. It offers TV series, documentaries, and feature films across various genres and languages. With the coronavirus pandemic, half of the world is locked down at home watching TV more often than usual.
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 created a strong demand imbalance on the daily timeframe.
Take a look at Netflix’s (NASDAQ: NFLX) daily timeframe analysis below; a strong imbalance created at around $374 per share.
We don’t need to pay attention to fundamental stock analysis on Netflix to make a trading decision. It does not matter if it’s estimated that Netflix (NASDAQ: NFLX) will spend $2.5B less this year and be close to free cash flow positive.
With the largest library and the entire industry shut down, analysts think that Netflix (NASDAQ: NFLX) will spend less while expanding its competitive edge.
Remember that a single timeframe is not enough to make a trading decision; you need to put the imbalances into context because you pull the trigger.
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.
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 price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
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.
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