Netflix, Inc. (NFLX) is a great company. Apart from the CEO’s snafu a couple of years back, this streaming movie giant has “done no wrong.” Think about it from a consumer standpoint as well. It’s quite inexpensive and it’s easy to use. You can stream NFLX from any of the major game consoles as well as some TV’s. I’ve mentioned some other great shows on NFLX but two newer shows, both of which have been nominated for Emmys, House of Cards and Orange is the New Black. These shows are legitimate, full length episodes, which are streaming on NFLX. They are both rock solid, with a great cast. I’ve watch the full first season on both. They are adult themed, but NFLX has no shortage of kids shows or movies as well.

THE STOCK

I feel the stock is pricing in how awesome the company is. Albeit a little expensive per share in my book, the chart is the chart and the price is the price. So, I’m here to answer the question that’s on the mind of many traders. Where is NFLX going?

RECENT ACTION

Well, it obliterated the all time high, not too long ago. Getting a close above 306.00 was huge for NFLX. And then NFLX demonstrated what I refer to “gorgeous wave rotation” as it came back and retested the 299/306 old resistance zone as new support. The exponential moving averages are screaming bullish on this stock. Screaming, like a three-year old in the candy aisle of a grocery store, when they are told, no, they just can’t have the three pound bag of peanut M&M’S. It’s ok Mom, I promise, I forgave you for this…

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DOING THE ANALYSIS

Fibonacci analysis is really the best determining factor for the upward price of NFLX. Fibonacci does take some time to perfect. But the main rule that has to be met is the .50 line should go through a gap, or a strong move. I’ve marked the 50% Fibonacci line with a bright red line. The $204 area was a gorgeous support, being touched three to four times by the stock and that gap has remained open as a breakaway gap.

WE’VE GOT A MOVER

Using this confirmation of my Fib and selecting the appropriate beginning and ending of this wave, it appears NFLX is going to make a strong case to continue bullish to its ultimate targets of 335 and then 351. If you are bullish in this stock, stay that way. If you aren’t in any trades, you are beginning to chase this one a tad. Keep your stops in the right location. It’s looks like we have a mover on our hands folks.

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Have you seen the latest issue of the TraderPlanet Journal?

Read the cover story interview with Investor’s Business Daily’s Bill O’Neil

Read the Ask Slim column by Steve Miller