NFLX Daily Chart
enlarge these images to see the pictures fully
- Buy the dip worked again
- Loosely fit rising trendline still supports
- Volume became even drier over the past two weeks
- Tops require more time
- The importance of $423.21/share
NFLX went up 348% over the past 243 trading sessions, so we began doing some studies to find the candlestick patterns and other technical indications that the stock may have topped, and to what degree would we need it to drop before it has significant value again.
One thing I may have not shared on the prior chart with this study is the upward moving trendline, price generally touched it enough for it to act more of a base of support than anything else. Also, a trendline like this if broken and held below the current price's direction would flash a sell sign, at least temporarily.
There are a few odd-ball scenarios when volume spikes happen in the high million count. What I mean by that is when price traded at an interim top in April the volume count rose to above 30 million shares traded. Then in mid-June volume spiked again to the 15-20 million range before price consolidated and moved higher toward 418.97
Similar to how bottoms (base building) if they take more time it could be more of a coiling mechanism, and taken from another point of view tops could take more time to build as well, see how this next example has more of an "M" shaped topping formation:
Lastly, the level 423.21 is so important for the bear case that if it is violated even on a quick flash it would discredit the bearish possibility of a return to a more discounted price for this asset.
No comments:
Post a Comment