October 20, 2019

Netflix Is Rolling Over For Now

Netflix (NFLX) is well off their highs of the day which is nearly where the stock opened. I had mentioned to my Stocks trading signal room to look for NFLX to slide early. While the stock was up big thanks to the growth of subscriber numbers, their Q4 guidance was well below what the streets had expected. Usually, a guidance that far off is a recipe for a massive selloff (Ask STMP). While I didn’t think NFLX was going to drop 20%+, I just felt it would not sustain their gains early on. NFLX did drop over 20 points from their highs, but they are starting to bounce back. The bounce is the key phrase here. NFLX made a very bullish maneuver today. The stock bounced or rejected at a key technical level that was resistance the prior day. Several days in fact. The bounce took place at the 50 period SMA on the daily chart. That has piqued my interest in NFLX for a short term play. While I do think NFLX is overvalued and I can see the stock moving lower over the longer-term than up, I am bullish on the stock under one condition. That NFLX REMAINS above the 50-period SMA. If that is the short term floor being put in, expect NFLX stock price to ascend. Possibly to the $315-$318 range in the near term. I would watch NFLX closely and see if the stock can rise and rise quickly. 

about the author:

Charles Moon

Charles Moon is a technical "whiz kid" whose experience lies in scalp/swing trading. A patient educator, Charles excels at coaching/mentoring and can make complex concepts simple. Prior to joining the ranks of Prosper Trading Academy, Charles was a proprietary equities trader with Great Point Capital LLC. Coming from a retail trading background, his experience can help those with no experience trading to seasoned veterans.

Read Similar Articles

September 30, 2020

Bad News For NKLA Can Be Good News For NIO

  We had a great example of a swing buy entry in NIO, Inc., the electric car company (Ticker: NIO). It’s based on a break out pattern on an hourly chart and confirmed with a daily chart.   Click the video below to learn more details: Grab a free day pass to one of our live […]

Read Article
September 29, 2020

The Similarities and Differences Between VIX and VXX

The VIX and VXX are both very popular trading vehicles for trading volatility.  But, unlike the perceptions of many traders, they are not exactly interchangeable.  There are many similarities and more importantly, some very important differences. Click the video below to learn more details: Grab a free day pass to one of our live signal […]

Read Article
August 4, 2020

TSLA Inside Bar Entry

An inside bar is just what the name implied.  It is a bar that is “inside” of another bar.  We use a daily chart for this approach.  So the high from two days ago is higher than the high from one day ago and the low of two days ago is lower than the low […]

Read Article

Read Similar Articles

September 30, 2020

Bad News For NKLA Can Be Good News For NIO

  We had a great example of a swing buy entry in NIO, Inc., the electric car company (Ticker: NIO). It’s based on a break out pattern on an hourly chart and confirmed with a daily chart.   Click the video below to learn more details: Grab a free day pass to one of our live […]

Read Article
September 29, 2020

The Similarities and Differences Between VIX and VXX

The VIX and VXX are both very popular trading vehicles for trading volatility.  But, unlike the perceptions of many traders, they are not exactly interchangeable.  There are many similarities and more importantly, some very important differences. Click the video below to learn more details: Grab a free day pass to one of our live signal […]

Read Article
August 4, 2020

TSLA Inside Bar Entry

An inside bar is just what the name implied.  It is a bar that is “inside” of another bar.  We use a daily chart for this approach.  So the high from two days ago is higher than the high from one day ago and the low of two days ago is lower than the low […]

Read Article