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, https://twitter.com/GarySMorrow/status/1255184592325054464, provided solid support.
Despite entering extremely overbought readings in mid April, https://twitter.com/GarySMorrow/status/1250499673812418560, 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.