I suppose anyone short $NFLX in January was just crushed by that monster runaway gap up. Well the stock closed it yesterday as the 200MA caught up to the same area. That’s powerful technical confluence hence playing long may be a favorable risk/reward set-up. Yet the MACD still squarely points down and the selling along the daily 5 EMA continues. Note how closely $NFLX tags its 5EMA almost every single day. For now a close above the 5 EMA may signal a short term reversal of the down trend.
Disclosure: I established a call position yesterday upon gap fill and have a flat stop on it.
Categories: Daily Market Brief