Netflix (NFLX) Fights To Stay Above Key Support ⎯ These Are Our Levels To Watch
Last week, we highlighted Netflix (NFLX) as a potential short play, and sure enough, the downside played out just as we pointed out in this trade breakdown. After the key support level we were watching right around 397 broke down, we expect there to be a bit more downside should the overall market continue to look weak, as well.
Should this play out as we illustrated in our last video, and like we are watching again in this further breakdown of NFLX, we could see prices retreat all the way back down to the 375 area.
One very important thing to note as far as extraneous forces in the market, FOMC is later on this week on Wednesday, where Fed Chair Jerome Powell will certainly send some ripples throughout the market when he announces the Fed’s next move in terms of rate hikes or pauses. Unfortunately, rates cuts are still a long way off with the latest inflation print coming in hot.
Back to looking at NFLX, this may not yet be the time to look for a short play on the stock, however, if this 397 area gets another flush through it, then we may be looking to go short the streaming giant as there is not much support left until a solid move to the downside comes first. Be sure to keep this one on watch and remember, capital preservation is key.
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