If you’re trading Netflix (NFLX) as a swing or intraday trader, be sure to reference this short-term Fibonacci Retracement Level grid for the stock.
Here’s the Daily Chart with key Fibonacci Levels highlighted:
Our quick retracement grid above shows the 2015 to present price action and three Fibonacci Retracement grids drawn from swing lows to the August swing high near $130.00 per share.
While you can reference each individual Fibonacci Retracement as drawn, often the more important information comes from the confluence or overlap of Fibonacci Retracements.
In this example, we have two Fibonacci Zones which include the following:
- $94.00 and $98.00 per share (lower confluence)
- $102.40 and $104.20 (mid-confluence)
Price is currently rebounding strongly off the mid-level confluence above $102.00 per share.
Beyond the Fibonacci Retracement Grid above, note the $115.00 per share horizontal resistance level.
If price clears this resistance barrier, look to trade another bullish breakout toward new highs near $130.00.
Otherwise, failure (resistance) here suggests a play back to $110.00 then the mid-level overlap again near $104.00.
No matter what other strategies you’re using to trade Netflix, use this as a simple reference (planning) chart.