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ChartMeNot
Dec 18, 2021 5:39 AM

NET - Possible bottom here too 

Cloudflare, Inc.NYSE

Description

Trade safe on this one.

Notice the support around 130.

There is a small gap on that last move up, around 116.

Probably plenty of time to get in this.

Comment



This is just a guess. My stop is at 127.27, and the market has a way of taking my money when I put in stops.

Trade closed: stop reached

Stopped out the next morning on a big drop to 123.90. Shakeout?

145 possibly rejected here too.

I guess there's still too many bearish scenarios to justify buying just yet.

Comment

Intraday drop to 122 so far. Perhaps we're headed for 116 or lower after all.
Comments
gooney0
On the 15m chart, I don't like that it put in a similar high ($138) and not a higher high. The top is also rounded which is harder to overcome than a clean pivot.

I do like the volume, and the stop below the double bottom is a smart move. I like the neckline at $143. This could also be a head and shoulders.

I'd look at it again over $143. $143 -> $220 is a lot of room.
ChartMeNot
@gooney0, what do you think about NET now? would you still look for confirmation?
gooney0
@ChartMeNot, The weekly chart is triggering a buy setup if over $145.26 with a stop of ~$123.90.

Ending volume on the weekly chart + green candle spells bounce.

The weekly chart retraced over 70%. I would expect it to bounce half way, but not all the way back up.

I don't like it enough to take the trade.
gooney0
For 12/27, I like AMD and FAST
ChartMeNot
@gooney0, OK first of all good work on AMD and FAST, if you were doing a day trade there.

With that said, what did you mean about "ending volume on the weekly chart", it was low, is that what you see?
gooney0
@ChartMeNot, on the weekly chart there are 4 red weeks in a row. The final week of 12/13 has higher volume. This often indicates the end of a move.

That doesn’t mean it’ll bounce, just that it’s likely to stop.

The principal is that all the sellers have sold. After 4 red weeks it’s also likely they’ve overreacted.
ChartMeNot
@gooney0, thanks for the explanation
ChartMeNot
right I see the bear case now.

IDK I kind of prefer finding bottoms rather than breakouts but I'm trying to be open minded. everyone has a style. trying to find mine.

frankly this stock could consolidate for a long time. what was the price last time we were talking about this? 120 right?
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