Netflix is not a stock for the faint of heart. Lest you needed any evidence, here is the 3 year weekly chart:
So a move from 75 to 300 in less than 18 months, and then a fall from 300 to 75 in only 4 months. That’s a fast escalator up, and a speed-of-light elevator down. After that rapid collapse, NFLX spent the whole of 2012 tracing out a base. It exploded higher on strong earnings and subscriber numbers in January, and hasn’t looked back since.
In the past 6 weeks, the stock has traded between 175 and 200, with a much reduced volatility profile after it more than tripled from October to January. So after that monster move, and the recent range, is NFLX poised for renewed strength or eventual weakness?
Several points to note on the 6 month chart: