The Latest for NFLX
Good evening everyone. This is Henry Gambell with SimplerOption.com, and in tonight's free video, I wanted to continue to update Netflix. We looked at Netflix in last week's free video, and one of the reasons why I like continuing to go back to it is because it has good liquidity, not only in the stock, but also in the options.
If I come back and look at the price swings we've seen here lately, we've just got nice movement in both directions, because I feel not only does symmetry work better in markets where you can find decent swings, but if you're wanting to you know work swing tight positions, you need some decent moves. Netflix has been a good candidate for both of those as well. Getting down to where it stands right this second, we've got kind of some interesting work to look. Off the daily chart, and last week where we were looking for support back at 95, it came off of those levels very nicely. As of now, it's just having a little bit of trouble closing above the 50 day moving average.
We can see the little bit of a trend line that we've got on the daily. I wouldn't quite call that a trend, but you can just see the consolidation pattern, and essentially, what we're looking for is: can Netflix break out and above this 98? And then of course then into 100, 103, and then potentially even higher, because if this 95 holds, that we've illustrated as being key support, the price target off of that will be your 12/72 extension. So we take our swing high against the most recent swing low. Of course, remove the levels we've already been through.
This is how we know our next overhead decisions, and why we know our other extensions. Now, how might we get there? Before our squeeze is a perfect indication of consolidation in volatility, or basically just looking at how price has traded sideways throughout all that time right there at 95. It's going to get ready to have a move. The two hour chart shows you something very similar, and what I think might be hopefully most helpful tomorrow is looking at this 15 minute, because this pattern I was looking for it to fire long into the end of the day.
Well, the markets didn't quite cooperate with that, and it's trying to fire short. However, if we're looking at the opening low, and run that against the high that we made intraday, you can see that we're still trying to hold this particular 6-1-8 retracement. So this should be an easy trade tomorrow. "Easy." I would like to see it hold this level. Especially if it gaps up and shows some good strength to start the day, for day trading, I think you might be able to get a run to 100 fairly easily. For more of a swing trading thought process, I'm looking at some butterflies around 100, and it still remains a very active ticker for me.
I hope that helps. Gives you something to think about as we get into Wednesday. That will be yellin', so you have one more day to day trade this kind of stuff if you would like.
One other thing I want to make you aware of is the Elliott Wave class that we're going to be doing with David. For those of you that know the voodoo lines, and David Starr, the moderator in our chat room, he's an excellent technician, and he's going to be going over his Beginner's Guide Elliott Wave. This will be March 15th, from 3:30 to 7:30 CST. After this video, you'll be directed to a place where you can sign up, if you'd like to join us. I hope to see you there.