This idea is an update to my original idea "Earnings Pop to 520" (see link).
NFLX needs to make a sustained break above 569 to initiate the next move higher to 585 (minimum target).
Once we get this break it will take the following path - expected path is the black arrow:
- Run to 585 (by 2/2/2024 earliest, 2/9/2024 latest) - Pullback to test 577 for support - Then at least one more leg higher to 600-620 (point target = 610 by 2/16/2024)
The green funnel represents buying pressure that will drive this higher. The most important channel is the dashed deep purple/blue boundaries w/ solid blue center - this is the demand zone that it will respect during the markup.
Bigger picture: If you go back to Jan. 2022, there is a gap down from 563.36 - 566.88. The earnings pop filled this gap and we are currently establishing support in that range.
Confluence at the 585 level as an initial target:
- 0.786 retracement of the ATH (700.99) back in Nov 2021 = 585.80
- larger degree activate markup level at 585, this will act as another bullish driver to send this higher to 610 after 585 is tested
- Equilibrium levels where supply = demand at (2/2/2024, 583) and (2/5/2024, 584)
** Stop loss is a sustained break below 556. It can trade below that intraday, but if it closes below 556 on 2 consecutive days it will assume risk of dropping lower to test 537
Good Luck bears, bulls still have this. ~Jerrymandering 101
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I'm in the following calls that I entered yesterday 1/31:
Feb 9 585 calls (cost: 3.80) Feb 2 575 calls (cost: 2.73)
Today I'll be looking to enter Feb 16 595 calls for under 4.00.
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Made initial break of 569 already, now expect a retracement to test support around 566-568. If that holds then this will make its way to 583-585 by end of day 2/1.
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Entered Feb 16 595 calls for 3.68
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Big add here
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Bonus play: Feb 2 580 calls for 0.04. Sell for over 1.50 +36,500% gain
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The re-accumulation here is intense. We need this to break above 569 and it will initiate markup to 585-605 (potentially 620).
I love this pattern, currently my biggest position.
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Add big around 2pm when this bounces off 550-553.
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Added calls before the close 2/6
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Would not be surprised if this is trading at 605 on Feb 9th at 12:30pm...
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SHould break 585 2/14 or 2/15 and then continue to 610-620 by 2/21