Originally Written:Mon, Aug 4, 2014 at 1:34 PM.

Note that this is not a recommendation to buy or sell anything. Risk your money at your own peril.

Summary: NFLX is in a secondary downtrend, that’s likely to continue.

On this chart, you can see that Netflix has started a typical secondary reaction downtrend, within the context of a long-term bull market. Some interesting things pointing to a continuation of this downtrend are as follows.

  1. The trend is always more likely to continue than reverse
  2. No large support area for a while
  3. Both MACD lines have crossed the signal line. (bearish signal)
  4. The Bollinger Bands are pretty tight. (this can signal an upcoming large move in either direction)
  5. Price has crossed through the 50-day moving average.

Now, from a tactical point of view, it’s also an interesting place, as the risk/reward ratio is pretty good if you consider that price has a reasonable chance of falling to 380, and a short stop could be placed at 435ish pretty safely. Meh. Might be interesting.

nflx 04-08-2014


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