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diamondparker
Jan 25, 2024 5:33 PM

NFLX Short: Gap Fill and High RSI Short

Netflix, Inc.NASDAQ

Description

Hey All,

I wanted to get your feedback on this analysis.

I am solely basing my opinion based on the RSI indicator, MACD and candlesticks on the daily chart.


Although earnings help NASDAQ:NFLX to go up slightly. It had to restest a strong resistance at 562.46. Once it reached the resistance the bears took control which resulted in a pretty strong bearish pinbar, usually signaling a reverse in trend. Along with the pin bar the RSI is way oversold and the MACD is looking like it is being set up for a bearish divergence, where the price action is trending up, but the MACD is trending down. In addition, there was also a gap up during earnings and that gap will need to be filled.

This signals to me that the there will be a short, even if just to fill the gap up.

What do you guys think?
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