We just updated our Netflix (NFLX) forecast and the picture is quite interesting.
This is a perfect opportunity for us to discuss how we identify our “fast movers”. Fast movers are stocks that are expected to make powerful directional moves of 50%+ within a compressed time window of 12 months or less.
Basically, when there is a short period of time (less than 12 months) between a major cycle top and bottom (or bottom and top), stocks tend to move with quite a bit of power during these times. Not always, but quite often.
Case and point, Netflix’s collapse between November of 2021 and May of 2022. Red ellipse above. As you can see, there was a short period of time between these points. Six months to be exact. And boy did the stock move. Collapsing from $700 to $162 a share during that time.
Here is where it gets interesting. Take a look at the green ellipse above and we have a more extreme repeat of this very same trade setup. The time window between this major cycle up and down is only 4 months.
Will the stock collapse during this time, just as it did in 2021-22?
It might, but this is not a guarantee. We have to consider other factors in our calculations in order to ascertain this final outcome. NFLX is just one of such opportunities. If you would like to find out what NFLX and other stocks will do next, in both price and time, please Click Here.