NFLX Mean Reversion
The trade is a mean reversion setup based on the $700 resistance level as well as the prior 52-week high of $697.49 that occurred on July 5th, 2024. The trade is purely based on an intraday rejection observed on the 65-minute timeframe, forming a classic "buyer's fatigue" pattern where the first 65-minute candle is above the ATR and holds strong volume, while the preceding candle still closed the previous trading session with either consolidation or a push downward, leading to a daily candle with an upper wick as seen in the current NFLX chart. The plan is to short the intraday low of $694.19, with a stop loss placed at $701.20 based on the 65-minute failed breakout close. The key levels to monitor are $700, $696.50, and $692.31, as these are likely to hold strength due to them being previous volume nodes.
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