NFLX stock has formed a bullish ascending triangle pattern over the last few months. The relative strength index is a bit overbought at about 60, and the moving average convergence divergence (MACD) has trended sideways. These indicators suggest that the stock has room to break out on the upside, but there has been a lack of strong momentum and volume over the past few months following the breakout in at the start of the year.We should watch for a breakout from the ascending triangle's upper trendline and first resistance at around 335.00 level toward second resistance at 375.00 level. If the stock breaks down from lower support at around 330.00 level, traders could see a move to lower support at around 310.00 level or a move down to retest reaction lows near support at around 275.00 level, although the bearish scenario seems less likely to occur.
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The call was right, price started to break out. Opening a trade, aiming to next resistance.Note
Before earnings report came out shares were falling, because it was not expected that NFLX could achieve projected goals. They only added 5.15 million subscribers worldwide compared to 6.2 million expected, although they beat earnings expectations of $0.79 per share by reporting $0.85 EPS for the quarter.Longterm NFLX is still a buy in my opinion, I am holding it.
Note
Closing half of position with 5.3% gain and adjusting stop loss to break even point. Trade is risk free and looking forward to more gains with the rest of position.Trade closed: target reached
Trade closed: stop reached
Second part of position was closed due to stop being reached, SL was adjusted to break even point so trade was risk free. Risk management is very important!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.