Positioned for next leg higher: Streaming stock analysis

Netflix stock has taken a bit of a hit lately, trading at $88.08, the lowest it’s been since February. But don’t count the media giant out just yet. There’s a promising indicator that suggests Netflix might be on the upswing soon.

According to Schaeffer’s Senior Quantitative Analyst Rocky White, Netflix is currently very close to its 80-day moving average’s 20-day average true range (ATR). This signal has only happened 21 times in the last decade, and it tends to result in the stock being higher a month later about 71% of the time, with an average gain of 5.2%. If history repeats itself, we could see Netflix back above $92 in the near future.

Options for Netflix also look good right now, with the Schaeffer’s Volatility Index (SVI) at 31%, higher than only 5% of readings over the past year. This means that traders are pricing in low volatility expectations, making options look more attractive.

Additionally, Netflix’s Schaeffer’s Volatility Scorecard (SVS) is at an elevated 72 out of 100. This shows that the stock has consistently experienced higher volatility than what options traders have predicted over the last year.

So, despite recent losses, there are some positive signs that Netflix could be headed for a rebound. Keep an eye on this streaming stock as it looks poised for its next leg higher.