 Hey, what's up YouTube? I'm Zeke and welcome to the dream green show Netflix earnings just came out and they beat their expectations But their stocks still feel 14% in this video I'm going to talk about what happened to Netflix. Why did it fall? And I'm also going to be doing a market analysis on Netflix to see if you guys want a day trade or a swing trade Netflix yourself, I'm going to draw myself some setups on how I'm going to play Netflix in the near future But I'm going to draw it out as in the worst case scenario. If I draw it out in the worst case scenario It gives me the best chance for my risk to reward ratio to be outnumbered by my reward My risk to reward ratio means that when I when I buy stock I'm willing to risk for this company to go down 5% before I sell and my reward would be that I see that this company has a 10 to 15% gain coming in its near future But enough talking, let's get straight into the video All right guys here. We are on thinkorswim. It is the platform provided by TD Ameritrade. It's completely free I have Netflix pulled up right here tick and symbol in FLX right now. We're looking at the 180 day four hour chart I mean every bar that you see on here is represented as four hours and if we zoom all the way out It is due last 180 days So as you guys can see Netflix had a major boom right here all the way up up almost 33% over the last week and a half or so So Netflix is a part of this tech bubble that everyone keeps talking about and it shows that it was super high It beat this earning report and it had a pullback the reason that Netflix had a pullback Even though that they did beat their earnings report was because the CEO said that even though doing a We got so many new users to sign up that they do not believe that they're gonna have that same kind of growth The other half of this year so they say yeah We did do good and we beat expectations for this quarter But next quarter we don't think that we're gonna see the exact same type of growth that we've seen from this Previous quarter. So that's why it was a major sell-off and also that Netflix was actually Overpriced right here. If we take a look at the RSI indicator. It's way above 90s up there to the 91s Okay, so Netflix was overbought and it was way overpriced hitting an all-time high of $575 and 37 cents So of course it was gonna have a sell-off all it needed was some news and when bad news come out They mark it overreacts and that's exactly what it did pulling back 14% over the last week since the earnings report came out. So while we have the chart set up Let's go ahead and draw some trend lines even though down here. It does say that Netflix is over so That's because bad news came out if we zoom out on the one-day one-year chart Netflix is still So far from the 180 day simple moving average This is so we're looking at the one day one year chart Netflix is still so far away from the 180 day simple moving average if we draw arrows here at the end of the simple moving average line it is pointing that it is and they uptrend but So Netflix can put all the way back to this 180 day simple moving average line all the way down here If it continues along this trend right there It can meet somewhere along the lines right here And that would be a good time to buy into Netflix if you guys don't want to buy into it now The last time that Netflix was trading sideways. It was around 450 in 405 ish for a ten ish. All right, so that's the last time Netflix was trading sideways So Netflix can pull all the way back to the $450 line trade sideways until it meets the 180 day simple moving average Because if you're taking a look at the MACD, it is about the cross and start to go back down And the RSI is pointing down So I can't so it can continue to sell off just like the last time it sold off on Netflix If Netflix ever come back down to being oversold Just like at this point right here, that would be a great time to buy back into Netflix But let's zoom in into the 180 day for our chart. There we go So we did have these lines drawn up from the one year chart We're only for our 180 day chart if we draw uptrend right here saying that it might stay true to this line right here The reason I drew this line is because it touched right here touch touch touch touch and Netflix might pull all the way back to touch again right here meeting somewhere along the 180 day simple moving average Only for our chart zooming in I see Netflix pulling back to around right here bouncing back up So around that consolidation mark and then bouncing all the way back down through the uptrend line so and Pulling back all the way around to the $450 price point, which is right here $450 Dollars consolidating somewhere in there So I can see Netflix bouncing off the uptrend line that we drew going back up and then pulling back down and breaking through That uptrend to come back down to $450. Alright, so zooming out. That is how the chart looks right now I'm no it looks confusing if you're not used to drawing some marketing analysis chart But that is going to be my play in my setups on Netflix All right, so there go the trend lines that I drew up if Netflix stick to those trend lines and pull back to $450 I'll try to get a full share of Netflix and try to hold on to it until the rise all the way back up to its Old all-time high, but $450 is looking like the price range that I'm willing to buy Netflix at right now Right now if Netflix is at $492, $493 So I got a little ways to go for it to drop a little bit more for me to get a great value on Netflix Could it go up from here? Sure it could go up from here, but I'm doing a worst-case scenario Hopefully it drops back down to $450 I'll buy a share and ride it back up and let Netflix continue to make their amazing movies on their great platform But other than that, that's all I got to say about Netflix If you guys want to follow along on what I exactly do with Netflix Make sure that you hit the thumbs up button and subscribe to this channel So you don't miss out on any future videos, but other than that, I'm Zeke bring you to dream green show and I'm out. Peace