NFLX Falling into a Dark Pool Buy Zone?

While we all wait on the highly anticipated NFLX earnings report at the close today, let's study the weekly chart to study the downside potential since the stock gapped down today on expectations of a weak report.

Netflix’s percentage of shares held by institutions has recovered to a respectable 79%, which is more consistent with a company that is in favor with the Buy Side Institutions. There has been accumulation going on since the lows of 2022.

Selling Short is problematic due to the support levels not far down from the current price and the risk of a hidden Dark Pool Buy Zone starting at the highs of the U-shaped bottom formation.

The current run down is at a technical support level, which is where pro traders often nudge the price to trigger HFTs. Beware of the risk of an extreme reaction at the open tomorrow. During earnings season with a report at the close, pro traders often take profits either in the final minutes of the day to avoid the risk of a surprise, or shortly after the open to capitalize on the reaction to the report.