EDIT: I mistakenly referred to today’s target that was hit as T3 vs. T2 as I should have. I also mentioned T4 as the final target when I meant to say T3. The error has been corrected in the revised posted below. Sorry…guess my body is out of of vacation mode but my head is still there!
The NFLX long hit T2 today for a 57% gain from entry so consider booking partial or full profits and/or raising stops. One thing that I just noticed when updating the chart was the previous typo of the T2 level. I usually get e-mails when I make a typo on a target or support/resistance level on a post vs. what’s shown on the chart but didn’t this time around. Somehow, I mistakenly listed T2 as 86.30 on the previous chart/post but that was incorrect. In fact it was a completely random number and as you can see from the string of charts on this trade below, T2 was always at the top of that 4/23 gap. The top of that gap was at 101.79 vs. the high today of 101.75 (I always set my long-side target just below resistance to avoid missing a fill by a few cents).
T3 still remains my final target on this trade although again I would urge even longer-term traders to consider at least raising stops to protect profits as NFLX is getting quite overbought and is very likely to experience a pullback, especially as it has just back-filled that 4/23-4/24 gap. More aggressive traders could even short the stock here with a stop slightly above that level. A likely target would be just above the bottom of the gap around the 91 level.
