Netflix (NFLX) has been forming an ascending broadening triangle since May and fully established a support level between 162.71 and 169.70 from the middle of May to the middle of July. Then the price reached a resistance level of about 250 in the middle of August.
In my opinion, NFLX is nearing the end of a 2+ week consolidation period and has formed a bearish head & shoulders pattern. In addition, the new descending trend line and 3 bearish key reversals suggest that the price will move lower approaching the support level of 174 by September 30, give or take a few days.
See my recent analysis of GOOGL to see how I marked support and resistance levels and observed key reversals to make a very accurate prediction (or maybe I was lucky).
Disclaimer: I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
In my opinion, NFLX is nearing the end of a 2+ week consolidation period and has formed a bearish head & shoulders pattern. In addition, the new descending trend line and 3 bearish key reversals suggest that the price will move lower approaching the support level of 174 by September 30, give or take a few days.
See my recent analysis of GOOGL to see how I marked support and resistance levels and observed key reversals to make a very accurate prediction (or maybe I was lucky).
Disclaimer: I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
Comment:
I marked the neckline of the head & shoulders pattern. The pattern will fully form once the neckline is broken. This could take a few days.
Comment:
The 4 day rally beginning September 7th was a convincing fake out, but the price plummeted $18.40 on September 13th to put this bearish pattern back on track. I'm looking for the price to reach $214-$211 before it really goes. The rally today wasn't exactly a key reversal, so I'm still very bearish.
Comment:
This last week has been quite volatile for NFLX and the price is getting support at $215.80 and resistance at $242.29. The obvious indecision is causing a whipsaw action making it difficult to trade. A conflicting double bottom and double top have both formed since September 6th. The bigger patterns still suggest a bearish price move, but in the short term it's a coin flip.
Comment:
It looks like this one is busted, and I'm admitting defeat, at least on the timing. The market is indecisive about NFLX with multiple double tops and double bottoms. As my mentor says, if it's made a top, it should just go. But we're not seeing that, at least for now.
Trade closed manually
