NFLX
NFLX went down like Joe exotic.
Covid took NFLX from 380 to 700. This uptrend lasted about 582 days.
It only took 67 days for the market to take away all the covid gains! The bag holder had no time to react.
NFLX has now given back all the covid gains and then some.
Price continued its downslide under the 50 ema all the way until it found support at 170.
Price bounced off support and ripped thru the 50ema for the 1st time in since it entered downtrend in Jan.’22
The break of the 50ema signals a pause in the uptrend and price entering a consolidation stage.
Price has now formed what looks like a Double top pattern with a neckline support at 220.
We also have a bearish MACD divergence with the current price action.
Although price has not broken the neckline yet to confirm the double top, the MACD bearish divergence has signaled that price is losing momentum.
With such strong bearing seller pressure from above, I expect the bears to break thru the neckline and continue downtrend.
Bearish trend reversal pattern + downtrend = High probability short trade.
Will be entering trade short taking swing trade to low of 170.
Entry: 226.34
Stop loss: 259
Target: 170.20, +24.80%, 1.72 RR ratio
NFLX went down like Joe exotic.
Covid took NFLX from 380 to 700. This uptrend lasted about 582 days.
It only took 67 days for the market to take away all the covid gains! The bag holder had no time to react.
NFLX has now given back all the covid gains and then some.
Price continued its downslide under the 50 ema all the way until it found support at 170.
Price bounced off support and ripped thru the 50ema for the 1st time in since it entered downtrend in Jan.’22
The break of the 50ema signals a pause in the uptrend and price entering a consolidation stage.
Price has now formed what looks like a Double top pattern with a neckline support at 220.
We also have a bearish MACD divergence with the current price action.
Although price has not broken the neckline yet to confirm the double top, the MACD bearish divergence has signaled that price is losing momentum.
With such strong bearing seller pressure from above, I expect the bears to break thru the neckline and continue downtrend.
Bearish trend reversal pattern + downtrend = High probability short trade.
Will be entering trade short taking swing trade to low of 170.
Entry: 226.34
Stop loss: 259
Target: 170.20, +24.80%, 1.72 RR ratio
Trade closed: stop reached