For over a year now, I have referred to the 384ish resistance level on NFLX (Netflix Inc.) as “The Golden Shorting Line” as every rally into that level, starting with the sharp post-earnings snapback rally back in which we shorted NFLX back on July 17, 2018, followed by several additional official & unofficial short trade entries off that level such as the next rally into The Golden Shorting Line a few months later on October 2, 2018, and the subsequent rallies & rejections off that level since.
NFLX daily Feb 20th
As such, I would be remiss not to point out the fact that NFLX has come full circle following the last rejection and 35% correction off that level back in early July of last year and has once again rallied into that key resistance level while overbought on the 60-minute, daily, & weekly timeframes. As it is late in the session & this post won’t make it out before the close today, I’ll wait to see how both NFLX & the stock market trade tomorrow & possibly into early next week before considering adding it as an official short trade. Until then, here’s the 60-minute chart with some potential price targets, for those interested.
NFLX 60m Feb 20th