Netflix Shares Approaching Major Resistance Area – June 12, 2014

0
78
Netflix Shares Approaching Major Resistance Area - June 12, 2014

Netflix Shares Approaching Major Resistance Area - June 12, 2014As seen on the Netflix shares daily price chart, the stock price is approaching a major resistance level at the $450 mark. MACD is signaling overbought conditions, which suggests that a selloff might take place sooner or later.

Take note though that Netflix shares are currently trading above the two moving averages, which means that buying momentum is still pretty strong. A short-term selloff might simply lead to  pullback to the dynamic support levels and lead to a continuation of the longer-term uptrend.

**relatedarticle**

Netflix Shares Forecast

Recent reports reveal that Netflix is still at odds with Verizon, which is being blamed for the slow pace of downloads in movies and streaming. In a tweet, Netflix shared that The Verizon network is crowded right now,” allowing internet users to spread the word and understand the slowdown.

Earlier this month though, Verizon issued a cease-and-desist order to the company, weighing on Netflix shares. “The impression that Netflix is falsely giving our customers is that the Verizon network is generally ‘crowded’ and troublesome,” Verizon wrote. “This could cause a customer to think that any attempted viewing of video, whether it be Hulu, YouTube or other sites, would yield a similarly ‘crowded’ experience, and he or she may then choose to alter or cease their use of the Verizon network.”

However, Netfix responded a few days later saying that “the messaging is part of our ongoing transparency efforts to let consumers know their Netflix experience is being affected by congestion on their broadband provider’s network.”

Further conflict between the two companies could take its toll on Netflix shares, as the price is fast approaching a potential turning point. A selloff could push it down to the $400 levels or perhaps until the visible support at $320 should legal battles ensue.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com