Another Major Breakout For Netflix
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Netflix, Inc. (NASDAQ: NFLX) shares were trading higher by $9.50 at $122.06. One of the catalysts for the rally may be attributed to initiation of coverage by Guggenheim Securities with a Buy rating and $160 price target.
The other catalyst may be a good old fashioned technical breakout to the upside. On July 17, the issue made an all-time intra-day high at $117.88. Two days prior, it made its then all-time closing high at $115.81.
It then drifted lower until found a bottom at $103.88 on July 28 and began to move higher. The following two days had matching lows at $105.40 and Netflix was back over $110 by closing at $111.56 on the July 30.
After a modestly higher open ($113.15 vs. Monday's close of $112.56), it retreated to $113 before resuming its rally. Momentum players added fuel to the rally when they began aggressively buying shares once it busted through its former all-time high.
At this time, it has found intra-day resistance at $122.79 and pulled back to the $122 level.
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