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chasel1
May 6, 2015 12:23 AM

NFLX Losing Momentum 

Netflix, Inc.NASDAQ

Description

After gapping up on good news NFLX put in a shooting star on increased volume. The MACD cross over and inability to put in a new high despite consolidating inside the Bollinger Bands could be a sign that all the buyers are in and there is a possible pullback coming. A break of the upper resistance line would be a no trade for me due to the previous reasons.

Possible short trades could be an entry when the RSI breaks 70 (if you are a more indicator based trader) or the break of the key support at ~552. However, the last time NFLX had a large gap up and the MACD indicator showed slowing momentum it actually put in new highs before finally (and slowly) rolling over.

Any feedback and constructive criticism is welcome.

UPDATE - NFLX never broke the trigger point and breached resistance. No trade.
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