For NFLX, we had a great runup in 2020 and have been consolidating for most of 2021. It is interesting because this channel we have been trading in (the purple lines) perfectly surrounds the 1.618 extension on this weekly chart with fibs going back to late 2019. We phaffed around there for nearly a year waiting for the longerterm ma's to catch up to us a bit.
We have this crazy good trendline we have been respecting (green line). On the daily chart, we see this impulse wave from 10/20/21 up to 10/29/21 was a sick and parabolic $80 move in a week. What followed was a steep move back down retracing all the way back down to the 0.382 extension in just 2 days. Coincidentally, the 0.382 level coincides perfectly with this green trendline. So this is an easy swing long trade to try. We can clearly know where we will be wrong and this is the key, right? We lose that 0.382 level, we will be looking at a much greater pullback~ perhaps it ends up being a failed breakout and it drops back down to that safe and trusted channel it liked so much for most of this year.
If we lose that extension and this trendline, I would look to short back into the channel, but for now, this is an easy long swing to attempt to see if we can continue to respect the fibs and trendline. I am long as of this am.
NFLX
long: $653.40
stop: $642.00
I will take a quarter profit off at $662 (0.618 ext) to give me more room to stay in the trade, but ultimately looking at $682 and if we can hold that, $712
We have this crazy good trendline we have been respecting (green line). On the daily chart, we see this impulse wave from 10/20/21 up to 10/29/21 was a sick and parabolic $80 move in a week. What followed was a steep move back down retracing all the way back down to the 0.382 extension in just 2 days. Coincidentally, the 0.382 level coincides perfectly with this green trendline. So this is an easy swing long trade to try. We can clearly know where we will be wrong and this is the key, right? We lose that 0.382 level, we will be looking at a much greater pullback~ perhaps it ends up being a failed breakout and it drops back down to that safe and trusted channel it liked so much for most of this year.
If we lose that extension and this trendline, I would look to short back into the channel, but for now, this is an easy long swing to attempt to see if we can continue to respect the fibs and trendline. I am long as of this am.
NFLX
long: $653.40
stop: $642.00
I will take a quarter profit off at $662 (0.618 ext) to give me more room to stay in the trade, but ultimately looking at $682 and if we can hold that, $712
Comment:
1st target was hit yesterday. Second target just reached now. Trade looks excellent.
Trade closed: target reached:
trailed out of the rest for this one, but it was a nice trade. Got to target 1 and target 2. Will keep on watch as I still like another move up, but for now, taking my profits and running.