Sunday, January 26, 2014

NFLX Netflix Weekly Chart Negative Divergence Fibonacci Retracements

Netflix was given a reprieve when earnings blew out even the most optimistic estimates. The red overbot, rising wedge and negative divergence spank down occurred as expected but the earnings beat sent price higher again. If long, take it as a gift and exit. Nothing has changed. NFLX can be shorted moving forward. Note that price made another new high off the hype, but the maroon lines show the serious lack of oomph and enthusiasm in place (negative divergence). Thus, another spank down should occur and this time earnings will not be there to pump the price. Watch the 20-week MA at 341 on the way down.

A loss of the 330-ish support would send price to 260-290. This is the same level as the 38% Fib retracement for the move from sub 70 up to 390. The 260-ish area would not be surprising for Netflix this year. Keystone called the bottom in NFLX at Labor Day in 2012 when everyone said it was a piece of garbage and would be bankrupt in a few weeks. Price launched off the possie d and never looked back. Now price is at nose-bleed levels so high a hawk just flew by at this lofty elevation. The neggie d says time for the downside ahead as everyone says Netflix is the best company in existence. What do you think is going to happen to NFLX moving forward? Projection is sideways to sideways lower for the weeks and months to come. Take the money and run. Keystone does not hold a position in NFLX currently. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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