Thursday, January 6, 2011

Quick Netflix Chart: 175 Line In Sand (NFLX)

I hear the Las Vegas Sands has the Porn convention today, perhaps this is just what NFLX needs to get their business model back on track, streaming porn. Ok maybe i am just dreaming.

Anyway take a look at the daily chart to the left, You can see an interesting wedge formation with the apex of the wedge lining up with medium term support in NFLX at the 175 level.

What happens below this level? Looks
like a quick drop to the 160's area would be in store. This will happen under two scenarios.
1. The index's pull back heard, especially the Q's pulling NFLX down with is
2. More negative headline risk pushes NFLX down below support and momo chasers pusher it down further based on price action and technicals

Never the less this market of 2011 has presented many trading ops, though the index's have not shown much conviction to the upside, which leads me to believe there could be a monkey up someones sleeve.