Netflix Stock (NFLX) Ascending Triangle Pattern Potential Breako
The stock has been rising along a bullish uptrend since the middle of August. But so far technical resistance around $375 has not allowed the stock to advance further. The uptrend and the resistance level have created a bullish technical pattern known as an ascending triangle. Should the stock price rise above $375, as the pattern suggests, it would signal a technical breakout, resulting in the stock rising to $405, an increase of about 10% from its current price around $370.
Bullish momentum has been returning to the stock as measured by the relative strength index (RSI). That is because the relative strength index has been trending higher since the middle of August
For a break to be considered valid, it should be on a closing basis. Some traders apply a price (3% break) or time (sustained for 3 days) filter to confirm validity. The breakout should occur with an expansion in volume , especially on upside breakouts.
Bullish momentum has been returning to the stock as measured by the relative strength index (RSI). That is because the relative strength index has been trending higher since the middle of August
For a break to be considered valid, it should be on a closing basis. Some traders apply a price (3% break) or time (sustained for 3 days) filter to confirm validity. The breakout should occur with an expansion in volume , especially on upside breakouts.