Netflix: Demand Drives Bottom Bounce (Technical Analysis)


  • This is a technical analysis artcle. Successful bottom fishing is highly respected on Wall St. because it is so difficult to do. It is easier to be a lemming.
  • All the pros are contrarians, buying on weakness and selling into strength. However, they will avoid stocks diving to find a bottom.
  • Likewise they will wait until the bottoming process is played out and the stock is ready to make its move off the bottom. However, bottom fishers don’t wait, they buy.
  • As the market moves into recession during 2023, many stocks will be diving to the bottom. Some stocks, like Netflix will be coming up from their bottom.
  • The nice part about bottom fishing a stock like Netflix is that it now has little downside risk, because it has already bottomed. It’s already starting to improve.
Woman Scuba Diving Over Huge Reef in Rangiroa, French Polynesia

MaFelipe/iStock via Getty Images

Bottom fishing provides big rewards with little downside risk, provided you know your fundamentals and know how to pick the winners like Netflix (NASDAQ:NFLX) which is close to doubling after hitting bottom. Some stocks that dive to the bottom, will never

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in NFLX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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