The NFLX short trade has been an exercise in patience but should finally start to get some traction here soon. Netflix was added as an active short on Feb 14th at 186.90 and since then, has consolidated above in a relatively tight trading range between 198 and 175. As of today, NFLX has finally broken below that 175 support level and as one would expect (due to a break of such well defined support) the stock is down sharply today.
As of now this trade has about an 11% gain from entry but I still believe that it has the potential to go much lower. However, please note that I did make another slight modification to the first target. T1 is now 142 and the first target still remains my preferred target at this time. However, T2 (106) also remains the final target for now and very well may become my preferred target soon, depending on how both NFLX and the broad market act going forward. As of the break of support today, NFLX still offers and objective entry or add-on at this time and as such, remains both an Active Trade and a Short Setup but will be removed from the Setups category should prices fall another couple of points. Updated daily chart, which reflects the revised target, as well as a 60 minute chart shown below.
