Type to search

Todays Big Stock Wealthpop News

Will Netflix (NFLX) Find Support Or Will The Slide Lower Continue?


To end the week, we are looking at a stock that has been weak the past three days. Obviously this sets up a short opportunity on Netflix (NFLX) after a slide that has brought us down to a key support level of right around 397.

The clear and obvious trade here would be if the stock fails to hold this support level, then we could prepare to go short in expectation that price could then see 375 relatively quickly. However, there is one other possibility for those who fancy themselves scalp traders.

A scalp trade is a trade you make when you know the move is going to be very short lived. Meaning, you expect to be in the trade for a very short amount of time. This strategy is not one we utilize often, but if you look at the chart, you’ll see that over the past several trading sessions we have seen a bounce at this area.

Now, if you were to take this scalp trade, you should have a pretty tight stop loss just below that 397 mark as the trade could go against you pretty abruptly if the stock and broader market show weakness coming into this session.

This trade would then be invalidated should price break through this level early on in the session. Still, your higher probability trade is to exercise patience and wait to see how price reacts to the 397 mark. If we show weakness, puts are still the favorite for this trade setup.

Be sure to keep NFLX on watch today and through next week to see if this level holds up. If not, get ready for more of the same and a slide back down to the next level of possible support at 375.

If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime. Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as your guide? Give it a try today!

Good Luck With Your Trading!

Christian Tharp, CMT

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group. My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

  • 1

Leave a Comment

Your email address will not be published. Required fields are marked *


It's not goodbye, it's hello Magnifi!

You are now leaving a Magnifi Communities' website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.

Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.

Take Me To Magnifi