Netflix, Inc.Short
Bearish Outlook: Targeting 640.36 and 616.11 on NFLX
Trading Idea for NFLX (Netflix, Inc.)
Based on the 4-hour chart, Netflix appears to be experiencing a downside momentum. The price has been consistently testing lower levels and is currently trading below the short-term moving averages. The key support levels to watch are the Previous Month Mid of 640.36 and the Previous Quarter Mid of 616.11.
Path of Least Resistance
The path of least resistance currently appears to be towards the 640.36 level, followed by a possible further drop to the 616.11 level. This aligns with the support levels indicated by the previous month's and quarter's midpoints.
Key Levels
Resistance Levels:
Previous Quarter High at 690.22
Previous Month High at 711.22
Support Levels:
Previous Month Mid at 640.36
Previous Quarter Mid at 616.11
Previous Month Low at 569.50
Indicators
The price is currently below significant moving averages, adding to the bearish sentiment.
If the price breaks below 663.05, it could signal further downside towards 640.36 and potentially 616.11.
A potential short setup could be considered with a stop above 690 and targeting the mid-level supports.
Trade Idea
Short Position: Enter short below 663 targeting 640.36 first, with a further target at 616.11 if bearish momentum continues.
Stop Loss: Place a stop above 674-690 to manage risk in case of a reversal.
Conclusion:
The chart suggests a bearish outlook with possible moves toward the mid-level supports. The trend direction and pivot signals further support the idea of selling rallies or breakdowns from the current levels. However, caution is advised around the 640.36 level, where the price could consolidate or reverse.
Based on the 4-hour chart, Netflix appears to be experiencing a downside momentum. The price has been consistently testing lower levels and is currently trading below the short-term moving averages. The key support levels to watch are the Previous Month Mid of 640.36 and the Previous Quarter Mid of 616.11.
Path of Least Resistance
The path of least resistance currently appears to be towards the 640.36 level, followed by a possible further drop to the 616.11 level. This aligns with the support levels indicated by the previous month's and quarter's midpoints.
Key Levels
Resistance Levels:
Previous Quarter High at 690.22
Previous Month High at 711.22
Support Levels:
Previous Month Mid at 640.36
Previous Quarter Mid at 616.11
Previous Month Low at 569.50
Indicators
The price is currently below significant moving averages, adding to the bearish sentiment.
If the price breaks below 663.05, it could signal further downside towards 640.36 and potentially 616.11.
A potential short setup could be considered with a stop above 690 and targeting the mid-level supports.
Trade Idea
Short Position: Enter short below 663 targeting 640.36 first, with a further target at 616.11 if bearish momentum continues.
Stop Loss: Place a stop above 674-690 to manage risk in case of a reversal.
Conclusion:
The chart suggests a bearish outlook with possible moves toward the mid-level supports. The trend direction and pivot signals further support the idea of selling rallies or breakdowns from the current levels. However, caution is advised around the 640.36 level, where the price could consolidate or reverse.
Disclaimer
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