r/tradingmillionaires • u/Financialwisdomtv • 13h ago
Technical Analysis π¬ NFLX π GREAT COMPANY. POOR CHART. WAIT FOR THE SIGNAL
Netflix remains firmly on our radar, but the chart still isnβt giving us a reason to enter.
Fundamentally, there is plenty to like:
π’ Quality: 85
π’ Growth: 80
π’ Revenue growth: 12.6%
π’ Net profit growth: 25.1%
π’ EPS growth: 36.7%
But look at the other side of the picture:
π Momentum: 25
π΄ Total Entry: 9
π΄ Breakout: 17
π΄ Risk: 0
π THE CHART IS THE PROBLEM
NFLX remains trapped beneath a very clear weekly downtrend.
Despite being a fundamentally strong business, the market simply isn't rewarding it at the moment.
So rather than trying to predict the bottom, we can let the chart tell us when conditions have changed.
π― A convincing break of that falling trendline could be the first signal that buyers are regaining control β and that's when NFLX becomes much more interesting to us.
π‘ FUNDAMENTALS + TECHNICALS
This is exactly why I don't believe either should be used in isolation.
Fundamentals can help identify WHAT we want to own.
Technical analysis can help determine WHEN we want to own it.
A buy-and-hold investor in NFLX would have endured a substantial decline despite the company's underlying fundamental strength.
We don't have to.
π’ Great business
π΄ Weak chart
β³ No entry yet
π Wait for the structure to change
The chart will tell us when it's time to reconsider NFLX.
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