Remember? When the stock got blasted from $700.00 all the way to $162.71?
Sure, gaps get filled… but bearish gaps tend to take a while.
For reference, it took close to eight months for the second gap to close…
But with that out of the way, let’s dig into the recent moves.
Moving along with the broader market, NFLX is holding on with some relative strength as it has yet to fall below the 200ema in green while so many others have…
But we’ve got a problem here as momentum has dipped and the share price is stuck in a tight space between Support and Resistance channels.
Let’s check the lower chart…
You’ve read plenty about the TTM Squeeze from me by now, but if you haven’t, it’s my indicator of choice.
The end of the white dots show that the compressed price range has expanded and the histogram — now red and drifting lower — tells us the direction…
Magnitude of movement is another thing.
The Triple Stochastic indicator on the lower chart is where I go for that. And here, it’s falling with both the fast and slow settings (white and blue-pink combo, respectively), now below the midline.
I give it a thumbs down…
“How do you trade it?”
A close above $352.00, you’re looking at $375.00+ for a target.
Below $306.20, I’d ride the short trade to ~$275.00 or lower… At least, that’s where money is likely sitting.
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