NFLX heading to $70
Between Summer and Fall of 2015, NFLX has created a double top pattern. There were two possible necklines, one near $93 (lows of September 2015) and another at $85.50 (low from the China induced August 24 2015 spike). The stock traded around the $93 level this week and it looked like the stock might just avoid breaking through the $85.50 low. However, the tech bears dominated today and we saw the stock sink to a low of $81.86. Unless we see a recovery over the next few sessions, the medium term picture for NFLX is not pretty. The next support level isn't until around $70, formed by the highs of Spring 2015 and the gap of April 2015. If that goes, we could be looking at $50. From the current standpoint, $70 seems likely, but $50 is a little more of a stretch, especially with the dive that the momentum indicators have taken (nearing oversold levels). But it would also be an awesome place to pick up some NFLX on the cheap.
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