Netflix, Inc.Short
Netflix Inc NFLX Daily - Overbought, rolling over. Retest $360?
Notice how NFLX has the last 3 earnings reports that center around the $360 level.
It looks as if NFLX could revisit the sub-360 level again in the next quarter. The strong close on Friday after the dip gives the chart a "stronger look" but the 430-440 level is strong resistance and therefore a low-risk level to establish shorts against. Sometimes trades can be established based on a definition of a low-risk entry level without a meaningful distance to a technical target. The current level of $426 here gives us $66 downside potential and $15 upside risk which seems decent at a 4.2:1 ratio, but when NFLX gets up to $435, then the ratio becomes a strong $75 downside and only $6 risk for a 12:1 ratio.
I don't know if I am right on this and I never know if I am right, but I know what trades I can take and what I can stomach and this setup is something that I am comfortable with. Although I LOVE my Netflix service and all of my kids do too, I'm not a bear on Netflix, but just thinking the chart is overbought here.
Tim 6/16/2014 10:09AM EST 425.72 last (It hit 426 when I was typing)
It looks as if NFLX could revisit the sub-360 level again in the next quarter. The strong close on Friday after the dip gives the chart a "stronger look" but the 430-440 level is strong resistance and therefore a low-risk level to establish shorts against. Sometimes trades can be established based on a definition of a low-risk entry level without a meaningful distance to a technical target. The current level of $426 here gives us $66 downside potential and $15 upside risk which seems decent at a 4.2:1 ratio, but when NFLX gets up to $435, then the ratio becomes a strong $75 downside and only $6 risk for a 12:1 ratio.
I don't know if I am right on this and I never know if I am right, but I know what trades I can take and what I can stomach and this setup is something that I am comfortable with. Although I LOVE my Netflix service and all of my kids do too, I'm not a bear on Netflix, but just thinking the chart is overbought here.
Tim 6/16/2014 10:09AM EST 425.72 last (It hit 426 when I was typing)
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.