NFLX has been trending up for three weeks. If the trend is getting old it is now showing.
Based on a set of two anchored VWAP bands originating June 1 and June 15, Netflix is
breaking through VWAP bands from the lower -2 standard deviation lines to the +2 standard
deviation lines and nearly the third upper deviation lines. This is a clear and convincing
VWAP breakout with buyers in overwhelming control Trading volume today is about 4 or 5
times the running average and about 1M. Volume support for price action is obvious.
The dual time frame RSI shows 1 hr TF RSI (blue line) shot up crossed over the daily TF RSI
(black line) and is retreating a bit. The daily RS is below 80 and still trending up.
The MACD shows a classical bullish momentum pattern with the lines well above the histograms.
Overall NFLX has the risk of overextension and possible topping with a fade afterwards.
The mass index indicator shows a value into the reversal zone but until the value rises and the
drops to 26.5, the trend is still intact. I will take a long trade here, hoping for a quick
5% ROI between now and the end of the week and about 50% on an options trade with
a strike of $500 expiring July 28th which I will close upon a confirmed reversal and use
the profits realized therefrom to buy a put option to take a ride down.
Based on a set of two anchored VWAP bands originating June 1 and June 15, Netflix is
breaking through VWAP bands from the lower -2 standard deviation lines to the +2 standard
deviation lines and nearly the third upper deviation lines. This is a clear and convincing
VWAP breakout with buyers in overwhelming control Trading volume today is about 4 or 5
times the running average and about 1M. Volume support for price action is obvious.
The dual time frame RSI shows 1 hr TF RSI (blue line) shot up crossed over the daily TF RSI
(black line) and is retreating a bit. The daily RS is below 80 and still trending up.
The MACD shows a classical bullish momentum pattern with the lines well above the histograms.
Overall NFLX has the risk of overextension and possible topping with a fade afterwards.
The mass index indicator shows a value into the reversal zone but until the value rises and the
drops to 26.5, the trend is still intact. I will take a long trade here, hoping for a quick
5% ROI between now and the end of the week and about 50% on an options trade with
a strike of $500 expiring July 28th which I will close upon a confirmed reversal and use
the profits realized therefrom to buy a put option to take a ride down.
Trade active:
Sideways price action watching for consolidation vs reversal.
