After nailing the drop in $ROKU (see related ideas), I see a less aggressive but similar price rotation playing out in $NFLX.
First, much about this stock is a little technically broken.
1. Declining RSI with RSI bearish divergence.
2. Declining On Balance Volume.
3. A pattern of Lower Highs.
4. Rolled over negative MACD.
5. We just broke lower from a bearish ascending wedge.
Second, but what's most interesting is that we're about to enter at the end of this month a Fibonacci Time Series inflection point. Either the stock is likely to break much higher or much lower.
Third, see what happened to ROKU today?
Streaming companies are going to be put under pressure from the increased competition from $AAPL and $DIS ($AAPL is announcing later this month). The market acting as a discounting mechanism, I'm expecting to see $NFLX take a $30 per share or more drop over the next 30 days.
In addition, the bigger picture is we're forming a smaller head and shoulder pattern currently (we're starting on the right shoulder) (see the red circle), which is a fractal of a larger head and shoulders pattern that we are forming for the past year of trading activity (see the yellow circles).
All this points to the stock coming under upcoming increasing pressure.
Skilled traders could use this as an opportunity to reduce exposure and enter into short positions on occasional rally's.
The red circle is on or about the expected time frame for price deterioration as well.
First, much about this stock is a little technically broken.
1. Declining RSI with RSI bearish divergence.
2. Declining On Balance Volume.
3. A pattern of Lower Highs.
4. Rolled over negative MACD.
5. We just broke lower from a bearish ascending wedge.
Second, but what's most interesting is that we're about to enter at the end of this month a Fibonacci Time Series inflection point. Either the stock is likely to break much higher or much lower.
Third, see what happened to ROKU today?
Streaming companies are going to be put under pressure from the increased competition from $AAPL and $DIS ($AAPL is announcing later this month). The market acting as a discounting mechanism, I'm expecting to see $NFLX take a $30 per share or more drop over the next 30 days.
In addition, the bigger picture is we're forming a smaller head and shoulder pattern currently (we're starting on the right shoulder) (see the red circle), which is a fractal of a larger head and shoulders pattern that we are forming for the past year of trading activity (see the yellow circles).
All this points to the stock coming under upcoming increasing pressure.
Skilled traders could use this as an opportunity to reduce exposure and enter into short positions on occasional rally's.
The red circle is on or about the expected time frame for price deterioration as well.
Comment:
Doji forming on today's print. This party could be getting started.
