Netflix could drop below crucial support area

2 920
Avoiding too much prediction of what happens next for NFLX. But it spent most of its time last quarter testing a support area. After a gap-down post earnings, it's back in that support area and touching recent lows. Moving past those lows could mean a fallout to the next support area which is also a 50% retracement from the Mar lows to July highs.

The 10d ATR (x2.7) suggests a 10.75% stop loss and position size of R9.31. An alternative is to use the 50 MA as a trailing stop loss, current at 7.95% and R12.58.

Lots of unknowns means a smaller R, maybe quarter or half position to start. Expect lots of volatility on the way, if it goes down.

Sell Short Point: 463.41
Stop Loss 10.75% (513.23)
Position Size: R9.31

Alternative
Stop Loss: 7.95% (500.25)
Position Size: R12.58

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