Score 8 (out of 10): NETFLIX INC sets up for +8.6% rally in 2 months

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What’s Going On Here?

NETFLIX INC has started to reveal viewing figures. Squid Game is the most ever with 1.6bn hours viewed in the first 28 days. The company also announced that they started filming for Lupin Part 3 which has also been a big hit for the streaming company.

Why Now?

NETFLIX INC has triggered a new technical analysis ‘buy the dip’ signal. During similar occasions, NETFLIX INC shares had a median return of +8.6%, over the following 2 months – based on 10 historical occasions with 8 of those showing positive returns (80%). This buy signal for NETFLIX INC received a high score of 8 (out of 10). This insight was generated on 2021-July-21 with last price of 682.02.

What’s This Asset About?

NETFLIX INC is in the Internet Content-Entmnt business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth -0.1% less (average). Ticker symbol: NFLX US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 740.74 (+8.6%) has been reached. Based on NETFLIX INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 642.62 (last price at 682.02), which is equivalent to a -5.8% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

15.7% (September-2021), 7.4% (July-2021), -5.3% (February-2021), 1.2% (December-2020), 0.7% (October-2020), -1.5% (July-2020), 11.2% (May-2020), 18.3% (March-2020), 9.9% (January-2020), 11.3% (November- 2019).

Summary:

Name NETFLIX INC
ViewUp
Star (1 to 10)8
Target+8.6%
Time2 months
Hit Rate80%

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