Boston, MA, 04/08/2014 (usastockreports) – Netflix, Inc. (NASDAQ:NFLX) (Closed at $338, Up 0.20%) opened positive but traded within the range the most of the trading session. The news of its launching the second season of “Derek” shown some buying interest in the stock with recording highest volume of last 8 day’s volume of 5.34 million. The stock rose up more than 8.5 times when compared with its trading price one and a half year back. The stock is extremely oversold at the current valuations with falling almost $120 from its recent peak and very low readings of RSI and MACD.
Technically speaking the stock of Netflix, Inc. (NASDAQ:NFLX) is in long term uptrend with the formation of higher highs and higher lows. The stock filled the gap made in the month of January but didn’t closed below that which is a positive sign and it is also trading above the previous swing low of $319. Further the stock is trading near the 200 day moving average which also makes the stock an attractive buying opportunity. Netflix price chart has also broken down the rising trend line but the support of swing low and 200 DMA may support the prices and the stock may hold these levels to further move upward.
Currently the stock of Netflix, Inc. (NASDAQ:NFLX) is holding above its recent swing low of $319. Investors can create long positions in the stock with $300 as the strict stop loss and if stock bounces from these prices the rise is expected to be sharp and may test $380 in a very short time and even the rise till the levels of 400 can also be seen with more time given to the stock. A close below $ 319 may also extend the fall further but to keep the bulls hope alive the stock should hold above the psychological level of $300. The stock is available at P/E ratio of 141.23 and EPS of 2.39.
