$NFLX Potential Long Set Up Forming on the 1D
I have been watching $NFLX for a while now, looking for some consolidation on the daily chart around the major trend line below.
It seems we have been having a consolidation pattern for a while now, and are still in this wedge, with a bit more room to the downside to go it looks like.
There is a bullish divergence on the stoch RSI on the daily that suggests if this wedge is broken, there will likely be a large thrust upwards.
The 1H chart shows quite a few green candles in the last few days that have solid volume, equivalent to the last bottom we hit after the massive gap down:
Like I said, nothing to act on yet, I will wait for a break of this wedge before making an entry. However, I will be keeping an eye on it for long positions.
Ideally, I would like to see us hit the long term trend line below, as seen here on the weekly:
Although, the weekly RSI is beginning to curl after being suppressed, and you can also see we are extremely close to the line.
Lastly, the monthly chart (while we are only 11 days into September) appears to be showing signs of strength in this area, while also being significantly low on the RSI and looking for a double bottom, which almost reminds me of this spot (marked in yellow):
Again, nothing to act on yet. Waiting for a breakout of the wedge and higher low printed on the daily. Ideally, wouldn't mind seeing it catch support off of the long term trend line either.
It seems we have been having a consolidation pattern for a while now, and are still in this wedge, with a bit more room to the downside to go it looks like.
There is a bullish divergence on the stoch RSI on the daily that suggests if this wedge is broken, there will likely be a large thrust upwards.
The 1H chart shows quite a few green candles in the last few days that have solid volume, equivalent to the last bottom we hit after the massive gap down:
Like I said, nothing to act on yet, I will wait for a break of this wedge before making an entry. However, I will be keeping an eye on it for long positions.
Ideally, I would like to see us hit the long term trend line below, as seen here on the weekly:
Although, the weekly RSI is beginning to curl after being suppressed, and you can also see we are extremely close to the line.
Lastly, the monthly chart (while we are only 11 days into September) appears to be showing signs of strength in this area, while also being significantly low on the RSI and looking for a double bottom, which almost reminds me of this spot (marked in yellow):
Again, nothing to act on yet. Waiting for a breakout of the wedge and higher low printed on the daily. Ideally, wouldn't mind seeing it catch support off of the long term trend line either.
Comment:
Wedge is being tested now. Looks like this will have a break to the upside in the next few days. Looking for an hourly then a daily close outside of the wedge. Potentially a small pullback needed then before liftoff to $335 range.
Comment:
Yikers, well this one did not form as I planned. Never entered a position in it as there were never any real signs of consolidation or notable closes on large time frames outside of the wedge.
I will say though that in hindsight this move was almost too obvious, and that once my long bias was overcome by a clear gap down, I should have looked to go short rather than let that bias prevent me from flipping sides and still making money from breakdown of an otherwise sound analysis (minus my bias).
It was clear a fairly big binary move was on the mount if we did not consolidate, and I let the short side of this one slip by because of the bias I placed on the movement. No position, no losses, but much to learn from this one.
I will say though that in hindsight this move was almost too obvious, and that once my long bias was overcome by a clear gap down, I should have looked to go short rather than let that bias prevent me from flipping sides and still making money from breakdown of an otherwise sound analysis (minus my bias).
It was clear a fairly big binary move was on the mount if we did not consolidate, and I let the short side of this one slip by because of the bias I placed on the movement. No position, no losses, but much to learn from this one.