NFLX Netflix Monthly Chart; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation

Since August is in the rearview mirror and Autumn began yesterdy, it is a good time to take  look at the FAANG (FB, AAPL, AMZN, NFLX, GOOGL) monthly stock charts. Facebook has rolled over after placing highs in February and July. Apple continues enjoying upside momo. Amazon is the strongest of the FAANG stocks and will be last to place its long-term multi-year top. Netflix wobbles at it hangs around near record highs. Alphabet (Google) is the weakest besides Facebook.

FB has likely placed its long-term top. GOOGL will likely print its multi-month and perhaps multi-year top now through November. NFLX will likely top-out next in October-November. AAPL will place its long-term top in October-December likely before the year ends. Amazon will be last of the FAANG's to be defanged likely placing THE top in the October-January time frame.

For the NFLX monthly chart above, price has dipped for a couple months off the highs, which may end up being a Tweezer Top. When price printed the Tweezer Top, the indicators were all in negative divergence except for the MACD line that remains long and strong. The neggie d creates this small pull back adn lull period but price likely wants to go back up to the Tweezer Top highs to use up the remaining juice in the MACD line. Once that matching price high occurs, the MACD iwll likely go neggie d so THE top would be in for Netflix probably for many months or years.

The red rising wedge is ominous since collapses from this pattern can be quite dramatic and devastating. The RSI, stochastics and money flow are all overbot and agreeable to a pullback in the monthly time frame. The upper standard deviation line is violated for many months and needs to show the middle band, at 242 and rising, some respect. The ADX is high at 66 indicating that the trend higher remains a strong trend but the ADX is rolling over for the last three months.

NFLX should float higher to satisfy the long and strong MACD in this monthly time frame but when the matching or higher price occurs, the MACD line will likely go neggie d and itdentify THE top for Netflix which is likely in the October-December time frame. If you have enjoyed huge multi-year returns from NFLX, keep scaling out as time moves along since THE top is approaching soon. Take one-fourth of the long position off say every two weeks going forward. 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.