Netflix displays a potential exhaustion gap. The elongated upper shadow of the candle increases the probability that today we have indeed seen an exhaustion gap. If that should be the case I expect at least a 20% correction from here, with the possibility of a 50% correction before it would make sense to close the position.
I suggest shorting Netflix. Stop: close above 700
Whoever chooses to go with the trade good luck.
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Comments
HighProTrading
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Looks like Carl Icahn's been reading my blog :)
nlellouche
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so what is your target? thanks for posting
HighProTrading
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If Netflix has about a 18%-20% correction I would close half my position. If it goes lower still I would continue to lighten up on my position. If NFLX declines 50% from it's high I would be out completely.
nlellouche
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thanks. What do you make of the last couple days. Seems like people want to buy at 644
HighProTrading
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I don't look or think much about my positions after I'm in. I watch them more closely only if they get close to my target.