If you’re a Netflix NFLX investor, you’re pleased that share prices are making a bold run for new all-time highs.
If you’re a trader, you’ve had good opportunities to trade pullbacks and breakouts in late 2016.
Let’s update our plan for Netflix NFLX and see what the next swing may bring into 2017:
First, take a moment to read our last two updates on Netflix with regard to the bullish breakout and upside potential – that is now successfully achieved:
It’s a good way to review real-time analysis and put it through the lens of hindsight now that price is back at the target highs.
We’re of course focusing on the $5.00 range between $125.00 and $130.00 per share.
Note the Rounded Reversal and Saucer Pattern that developed from 2015 to present on the weekly frame.
With this “bigger picture” overhead resistance level in mind, let’s focus on the Daily Chart:
Again, review the post “Successful Bullish Breakout Victory Lap for Netflix NFLX” for a perfect breakout and trading perspective.
You could have used options or stock – day or swing trading – for the extended breakout.
From there, a pullback in November toward the 50 day EMA ($112.50) was the safer buy on a pullback strategy (see our “Perfect Pullback” combo lessons for how to identify and specifically trade pullbacks via our method).
A “Flag” Trendline Breakout Trade developed recently at the start of December (green highlight) which set price on the current bullish “Open Air” pathway toward the prior high near $128 which we’re seeing achieved right now.
From here, we plan to trade a potential BULLISH BREAKOUT event to continue the uptrend and “short-squeeze” through to new highs beyond $130 (aggressive breakout tactic) or wait to trade a future pullback in a strongly trending bullish stock.
Either way, for educational purposes or for profit, focus on what happens at the $128.00 to $130.00 high and look to trade the departure “away from” the $130.00 all-time reference high pivot.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Published at Thu, 22 Dec 2016 13:00:29 +0000