Long Term Chart Netflix Stock Analysis:

The following Netflix Stock Analysis details the first two steps of a four step Stock Analysis process when preparing to trade any stock chart using Technical Analysis.

To get started let’s take a longer term look at Netflix Stock Price Data by looking at a 10 year chart of Ticker NFLX.

10 Year Netflix Stock Chart (Ticker: NFLX)

As you can see in the 10 year stock chart above Netflix has moved from a low price of $2.42 to it’s highest price established in 2011 of $304.79. Now let’s start to dig into the Technical Analysis of Netflix stock market price starting with the long term and moving closer to the hard right edge of the chart.

Long Term Netflix Stock Chart Trend Analysis

The first step is to analyze Netflix Stock on a long term basis and establish historical trends leading up to today’s financial pricing. The best way to accomplish this is by changing the chart settings to display 10 years of price data and start getting a feel for where and how price has moved in the past for this particular stock.

Long Term Netflix Stock Trend Analysis

As you can see in the above picture Netflix had a 2+ year uptrend (green arrow), a little over a year downtrend (red arrow), and then went into a sideways trend (blue arrow) before making a strong upward price move starting in the first half of 2009 (green  arrow).

These are the long term trends and a great place to start your Netflix Stock Analysis to get a better understanding of where stock price has been and how it has moved in the past.

Long Term Netflix Stock Chart Support and Resistance

Now let’s mark the stock chart with some long term support and resistance levels.

Long Term Netflix Stock Support and Resistance Levels

The purple lines on the chart above mark significant areas of support and resistance for Netflix Stock price.

As you can see on this long term chart there is one horizontal line and one upward trending diagonal line that forms a chart pattern called an Ascending Triangle which is a bullish continuation pattern.

Once this pattern broke above the resistance line to the high side price went on a powerful upward until the recent strong short term pullback which we will detail very soon.

The key here is to mark these support and resistance levels with a particular color that you will recognize when you zoom your chart settings into a shorter time frame and start looking at areas where you want to enter or exit a trade in Netflix.

Now that you have analyzed the Netflix Stock Chart from a bird’s eye view it’s time to zoom in a little for a closer look.

Intermediate Term Chart Netflix Stock Analysis:

To conduct intermediate term stock analysis I set my charts to show two years of price data and then repeat the process above as follows.

Intermediate Term Netflix Stock Chart Trend Analysis

Intermediate Term Netflix Stock Trend Analysis

By looking at the two year Netflix Stock Chart you can see that there are two prevailing trends. The first trend (green arrow) is about a 14-18 month strong uptrend in price.

The second intermediate term trend (red arrow) is a steep downtrend with the presence of two strong gaps down (strong bearish indicators) in price.

So as a Technical Trader what does this intermediate term Netflix Stock Chart Analysis tell us?

Well, it doesn’t take a rocket scientist to see that traders have been rejecting higher stock prices with a vengeance. Looking to place a long, or bullish, trade would be going against everything Technical Analysis teaches us as far as trading with the trend and not against it.

Now let’s take a look at where some intermediate term support and resistance levels are.

Intermediate Term Netflix Stock Chart Support and Resistance

Netflix Intermediate Term Support and Resistance Levels

This 2 year stock chart of Netflix Stock is market by two horizontal support/resistance lines (teal color) as well as an upward trending channel and a more recent strong downward trending channel (teal color).

Both horizontal lines, which now represent resistance areas, where included because these lines are touched multiple times by price and also coincide with the recent gap down towards the end of October ’11.

Looking To Trade Netflix Stock? What This Analysis Tells Me…

So from a Technical Traders perspective looking to trade Netflix you have to establish where you think price is headed in the future. From the look of this stock chart, you have the presence of a steep downtrend with a recent big gap down showing the conviction of sellers to move price lower. You have two significant levels of intermediate term resistance overhead as well.

None of these bode well for a bullish run up in price but just in case let’s make a case for (miracle) turnaround.

You have the long term rising support line (purple) that we marked earlier in our Netflix Long Term Stock Analysis at around $60. Now this is still a long ways away from current price at the writing of this article but like I said I’m trying to make a case for a bullish trade.

Also, recent price action could be the formation of a short term double bottom chart pattern.

Overall, if you are looking for high probability Technical Trades then this Netflix Stock Analysis should have at least helped you to see what you are up against.