I couldn’t end the week without bringing this stock to your attention as a ‘rinse and repeat.’
You may know that Netflix (NYSE: NFLX) has been soaring to the upside over the past four trading sessions… establishing a record-high along the way.
This upswing is unlikely to ride out the week as Benchmark Financial downgraded Netflix bright and early this morning.
Benchmark Financial leaked that Netflix is expected to have insufficient content to last through 2020, and is facing prolonged production issues. As a result, they will have no choice but to close their production offices.
But here’s the financial intimation that caught my attention this morning… While Benchmark Financial didn’t upgrade AT&T (NYSE: T), financial analyst Ciara Linnane of Benchmark Financial stated that with AT&T expected to launch their new HBO Max streaming service in May, AT&T will likely underprice Netflix, and provide more content as well.
That’s not what AT&T’s competitors such as Netflix, Disney and Comcast want to hear!
But it is a suggestion that a trader who invests with insight into Wall Street’s research activity (brought to you courtesy of TrackStar), like myself, wants to hear to create a high probability trading opportunity to wrap up the week.
Analyzing the chart above, AT&T is toying with $31/share, a key spot for me today… essentially, it’s a magnet level for a long or short position.
Above $31/share, I expect bulls to pile into the stock itself, and I’ll be looking to place a trade to the upside and collect all available profits by the end of the day.
Below $31/share, I’ll interpret the market outlook as a sign of uncertainty for the stock, and possibly the company itself. I’d become short-biased, and look to place a quick short trade to end the week.
Trading as a bull or a bear today, profits are possible in both directions on AT&T off the back of Benchmark Financial’s early-morning press release regarding streaming giant Netflix and its brand new competitor, AT&T.
Yours for TrackStar trading,
America’s #1 Premarket and Day Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.