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Possible Bearish Inside Day Candle Pattern Detected for NetFlix (NASDAQ:NFLX)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in NetFlix (NASDAQ:NFLX) based on the price action in the company's shares. Today's price range of $89.90 and $91.03 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of NetFlix may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Potential upside of 35.8% exists for NetFlix, based on a current level of $90.27 and analysts' average consensus price target of $122.56. The stock should run into initial resistance at its 50-day moving average (MA) of $98.99 and subsequent resistance at its 200-day MA of $106.20.

NetFlix share prices have moved between a 52-week high of $133.27 and a 52-week low of $78.90 and are now trading 14% above that low price at $90.27 per share. Over the last five market days, the 200-day moving average (MA) has gone down 0.4% while the 50-day MA has remained constant.

Netflix Inc. is an online movie rental service. The Company ships up to three DVDs at a time, with no due dates or late fees, directly to the subscriber's address. Netflix also provides background information on DVD releases, including critic reviews, member reviews and ratings, and personalized movie recommendations.

SmarTrend recommended that its subscribers protect gains by selling shares of NetFlix on June 10th, 2016 by issuing a Downtrend alert when the shares were trading at $94.32. Since that call, shares of NetFlix have fallen 3.5%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bearish inside day candle Netflix

Ticker(s): NFLX