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Netflix is trading at new lows for the week.  The stock is off just over 3% at mid day and is taking out the lower band of a bull channel that has been in place since late April.  As expected the Feb/March highs,, provided solid support.  

Despite entering extremely overbought readings in mid April,, NFLX, had enough momentum to reach new all time highs this week.  Since then shares have been very lightly bid and, with today’s drop, are working on a fourth straight loss.  It’s now more evident that the upside is exhausted in the near term and a pullback/consolidation is on the way. 

Initial support is just above the $420.00 area.  A major high was left behind in this zone during the summer of 2018.  

We are long NFLX is some managed accounts.  We are looking to add on weakness.