Chart of the Day: Netflix Soars After Walking Away From Warner Bros.

The dog fight between Netflix (NFLX) and Paramount (PSKY) for the assets of Warner Bros. Discovery (WBD) was nasty. In the end, Netflix walked away empty handed. While the assets would have been a big benefit long term, it was the market telling the company in the short- and medium-term this was a bad deal.

So, with a $2.8 billion walkaway fee Netflix goes about its business of providing great content and expanding its services beyond the basics. It seems a small number compared to its market cap of $450 billion, but every little bit matters.

Who knows what is next, but the market sure agrees with this decision to walk away. The stock has been on a roll since the announcement was made in late February. The company will report earnings after the close on April 16.

The chart shows a stock firmly in an uptrend, with higher-highs and higher-lows. Candles are blue up top, which indicates strongly bullish on the GoNoGo composite of indicators. Money flow at the bottom of the chart is robust and momentum is strong as seen in stochastics on pane five. The average directional index is climbing, which means the trend is very strong here.

The stock has now recovered most of the losses since announcing its first bid for Warner. Now let's see if Wall Street likes earnings and guidance.

We like Netflix in TheStreet Pro Portfolio and rate it a Two, or " stockpile on pullbacks."

At the time of publication, TheStreet Pro Portfolio was long NFLX.