the NFLX long gapped up above the R1 level today and has managed to build on those gains so far (in spite of selling in the broad markets) and is currently trading up over 10% on the day. the R1 level should now act as support on any pullback and would be an ideal place to set your stops on the trade (somewhat just below that level, maybe around the 65.65 level). that level would also assure a roughly breakeven on the trade for anyone who took it on the break above the downtrend line friday.
shorter-term traders will want to keep a close eye on AAPL and the broad markets since we still might see the selling in the broad markets start to accelerate this week now that AAPL has triggered the 2nd sell signal that i was looking for. if so, AAPL will most likely drag the entire market down with it, kicking and screaming, thereby adding headwinds to the NFLX long trade. if AAPL and the broad markets do continue lower, then i would suggest taking full profits at T1 for shorter-term traders while longer-term traders and investors could sit tight with the appropriate stops in place. last few daily charts shown with today’s updated chart last:
