Chart of the Day - Tuesday, August 20, 2024

🏆 Today’s Chart of the Day was shared by @ZaStocks.

• Netflix ($NFLX) broke out to an all-time high today for the first time since November 2021. This “forgotten FAANG name” is recovering from its second-worst drawdown on record, in which it slid -76% in just six months.

• It’s no longer the index-heavyweight it used to be, but it’s still the 22nd-largest stock in the S&P 500 and the 10th-largest in the Nasdaq, boasting a market cap of $300 Billion.

• If $NFLX confirms this breakout above $700, it could reach $1,000 in the coming months, using a traditional Fibonacci extension of the drawdown.

Takeaway: Netflix ($NFLX) broke out to blue skies for the first time in nearly three years today. This former market darling has officially recovered from its second-worst drawdown on record. Above $700, the path of least resistance is higher.