I postulated the possibility of a large drawdown in Netflix in my last post below (with a mathematical price target) and believe the probability for this event has increased post-earnings as it did not gap-up or move substantially higher.
Invalidation of the Inverse Cup & Handle / arguably a Head & Shoulders would occur for me with the stock trading above April 4th's high (349.80).
Note the stock printed a daily hammer candle after the plunge this morning and could see a bounce before further resuming to the downside. A better short entry would be on the upside gap fill during a bounce in the next few trading days.
(No Position Currently)
04/17
Distribution occurring going in to earnings. Inverse Cup & Handle (1 could make a case for a head & shoulders).
~290 neckline.
369 conservative top of the cup.
369-290 = 70.
290-70 = 220 IC&H target.
No position. I do not recommend gambling on an earnings direction as this stock is highly volatile. This is strictly an exercise in charting. Earnings could either immediately invalidate this structure with a massive gap-up over the high of the handle or accelerate its validation with a miss or poor outlook.
Invalidation of the Inverse Cup & Handle / arguably a Head & Shoulders would occur for me with the stock trading above April 4th's high (349.80).
Note the stock printed a daily hammer candle after the plunge this morning and could see a bounce before further resuming to the downside. A better short entry would be on the upside gap fill during a bounce in the next few trading days.
(No Position Currently)
04/17
Distribution occurring going in to earnings. Inverse Cup & Handle (1 could make a case for a head & shoulders).
~290 neckline.
369 conservative top of the cup.
369-290 = 70.
290-70 = 220 IC&H target.
No position. I do not recommend gambling on an earnings direction as this stock is highly volatile. This is strictly an exercise in charting. Earnings could either immediately invalidate this structure with a massive gap-up over the high of the handle or accelerate its validation with a miss or poor outlook.
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