Netflix Is Struggling to Hold Critical Support
Will Netflix (NASDAQ:NFLX) hold critical support and bounce higher to continue the uptrend?
Or perhaps will sellers win the battle, collapsing price to a new lower support target?
Let’s plot the price course and note the trades to take from here in NFLX:
First, price remains (so far) in an uptrend and challenges a key support “Make or Break” pivot.
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The $115.00 per share level is the confluence of the lower Bollinger Band, 50 day EMA, and 50% Fibonacci Retracement.
Either this level holds, resulting in a bullish rally “up away from” $115, or it doesn’t, collapsing price toward $100.
Your trade – if you’re willing to play the next immediate swing – would be the departure away from $115 here.
Note the lower rising support trendline and 200 day SMA near $100 – the downside target.
Otherwise a bullish bounce play targets $120 then the prior high (uptrend continuation) into $130 per share.
Here’s a clearer perspective of the weekly chart and what may yet be in store:
A quick glance at the Weekly Chart reminds us that price is in an ongoing uptrend.
However, we’re currently in a “counter-trend retracement” swing down away from the upper Bollinger Band.
Price is likely – according to the Weekly Chart – to trade down toward the rising 20 week EMA into $110.00.
If so, it suggests the Daily Chart Support Pivot ($115) will fail, opening the door to a sell swing $5.00 lower.
Note how the rising 20 week EMA has been a key target during the uptrend.
Focus your attention – and build trading strategies – right now off the $115 pivot.