Netflix Inc. (NASDAQ: NFLX) has gained about 20% in the stock market since May 12th. Based on technical analysis, however, Virtus Investment Partners’ Joe Terranova expects a further move up.
Terranova’s remarks on CNBC’s “Halftime Report”
Terranova says Netflix is on the verge of finally breaking above the critical $593 resistance. On CNBC’s “Halftime Report”, he disclosed having bought shares of the streaming giant for a trade with a “very clear and strong tailwind behind it”.
“Over the last fourteen sessions, Netflix has had thirteen consecutive higher closes. The pattern I’m recognizing here is focusing specifically on momentum – the velocity of the move that’s occurring here over the last fourteen days.”
Terranova expects the stock to land between $625 a share to $650 a share in the next sixty days. According to him, Amazon followed the “exact same” pattern where it broke out earlier this year after being “asleep” from September 2020 to the spring of this year.
Shares of the $260 billion company are up more than 2.0% on the intraday chart.
Seinfeld is coming to Netflix on October 1st
Terranova acknowledged that Seinfeld coming to Netflix on October 1st could be a fundamental catalyst for the stock as well but reiterated that his entry was “technically motivated”.
“From a technical perspective, there is no better chart I can find at the moment in the league of mega-cap technology names,” he added.
Terranova sees the Netflix trade as “low risk” as the downside is to the $540 level only, where he said he would accept that he was wrong and pull out of it.
The news comes a week after Netflix said it would release 42 original movies by the end of 2021 – a number that many of its competitors would dream of hitting in a full year.
The post Joe Terranova bought Netflix shares on Wednesday: here’s why appeared first on Invezz.