Watch NFLX for consolidation break - Swing Trade Idea
Since I am looking for a short term swing trade, I am showing 10/20/50 MA's on this daily chart. Price is in the middle of a regression channel so first price move out of consolidation should be to either end.
Yellow ovals show where price stalled at the 50MA and RSI tested 50 twice before failing lower. Considering the upper drop - before price consolidated sideways to 50MA was about $300, price can drop lower still. I am watching 180 to break/hold, and I am watching the 10MA to see if it turns down/away from 20 or if it crosses over.
The red rectangle on RSI shows there was strong selling pressure for many days, and RSI may stay under 35-40 and turn back down if selling resume - this is typical in strong trends, where RSI can turn down again before reaching 50. Stochastic looks like %D (pink) it is turning down again, though this still needs confirmation. A sharp %K move down is likely if consolidation breaks lower and there is big red candle day. Since many experts are calling for an "end of May" rally - to begin any minute now - price may also make a sharp move up in the regression channel.
Price over 188 should move to 206-210. Price under 180 should get to 165 easily, then 150.
Yellow ovals show where price stalled at the 50MA and RSI tested 50 twice before failing lower. Considering the upper drop - before price consolidated sideways to 50MA was about $300, price can drop lower still. I am watching 180 to break/hold, and I am watching the 10MA to see if it turns down/away from 20 or if it crosses over.
The red rectangle on RSI shows there was strong selling pressure for many days, and RSI may stay under 35-40 and turn back down if selling resume - this is typical in strong trends, where RSI can turn down again before reaching 50. Stochastic looks like %D (pink) it is turning down again, though this still needs confirmation. A sharp %K move down is likely if consolidation breaks lower and there is big red candle day. Since many experts are calling for an "end of May" rally - to begin any minute now - price may also make a sharp move up in the regression channel.
Price over 188 should move to 206-210. Price under 180 should get to 165 easily, then 150.
Trade active:
The 5min chart shows a sudden breakdown through 180 at 1:00pm(13:00) EST. See the 1min chart and note the big sell at 12:58pm EST.
I also have a stochastic sell warning on 30min chart, from yesterday's last candle to the opening candle today.
I am buying puts with a stop/exit if price goes over 180.90. Small positions in 3Jun 165 strike and 17Jun 150 strike.
I also have a stochastic sell warning on 30min chart, from yesterday's last candle to the opening candle today.
I am buying puts with a stop/exit if price goes over 180.90. Small positions in 3Jun 165 strike and 17Jun 150 strike.
Trade closed: stop reached:
180.90 was breached yesterday afternoon and I do not want to get stuck in rangebound movement so I am waiting for the next opp.
