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Netflix (NFLX) Crossed Above the 50-Day Moving Average: What That Means for Investors
Netflix (NFLX - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, NFLX broke through the 50-day moving average, which suggests a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
NFLX has rallied 9% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests NFLX could be on the verge of another move higher.
Looking at NFLX's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 10 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting NFLX on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.