NFLX Consolidation pattern looking for breakoutNFLX long consolidation pattern started July is suggesting a breakout that could take us higher into wave iii upside target that might reach 640-650. Note that Consolidation started in July through Nov is now showing signs of a breakout. Looking to establish longs with stop level at 464.
NFLX
Microsoft is about to add some juice to the Nasdaq I started buying Microsoft call options on today's weakness and I'll be adding tomorrow. Price action is getting really tight at the right spot - $214.
Here's what I'm seeing on the daily time frame:
We have a potential bullish continuation pattern on the daily if the support holds
Do you see the support?
With evidence of capital flowing slowly into FANNG names (NFLX & FB), as well as similar supportive price action in Amazon, I expect a power move in Microsoft in the coming days / weeks.
Notice how we had similar support on Netflix a few weeks ago, followed by a nice rally recently. I think we're about to see the same in MSFT:
A 4-5% move doesn't sound like a big deal to most retail traders, but it's all about risk/reward and how you structure your trade. If the r/r is high, then you could express bets with different forms of leverage that make small moves big % generators. Whenever I publish analysis on a large cap stock... I am using options to trade it.
Reminder:
I'll be starting a live trading room of some sort for free in the coming weeks or after the New Year depending on the level of interest. Still thinking about how to set it up. I will showcase my trade management which is the most important thing in trading. (Active day trades/swings trades/etc). DMs are open if interested in joining.
NFLX - Going for 570. Will 662 follow after ? Good R/R setup !NFLX - Looks like we could see a rally up to 570 first, followed by 662 next but this view has to be evaluated anew once (if) price reaches 570.
Best is to wait for a push above 496 before buying, in which case Stops can be placed at 475 but I recommend using 458.8, just to give it some more room.
Ps: Notice that we have a potential Head & Shoulder pattern, building potentially the right shoulder.
NETFLIX path and direction possible breakout ?!Hello everyone
This is my Netflix idea for daily time frame
watch key notes for more detail on chart
for any question feel free to ask :) good luck
Note: price broke two important support orange line and green line
we remain bearish since price is trading below those two lines however
it seems that price is building a zone .. a demand zone and it lead to a breakout to the up side
to test orange and black line
ON RSI price seems to have a breakout need to confirm if those two lines hold as support
Netflix is preparing a rebound after its 20% drop from OctoberNetflix is being supported by the bottom of the rectangle + the 150 day moving average, which served as major support in the March 2020 crash.
I'm also seeing a lot of buying going into Covid beneficiary stock in the last few trading sessions, Netlflix being one of them.
This is currently my largest options position in my portfolio. This year has been a game changer for me trading options on large cap stocks. I've generated higher returns trading on 5-10% moves than on 50% moves in growth stocks.
A few reasons for this:
1) I'm more comfortable holding a leveraged position in mega cap stocks than I am in other equities.
2) Options on mega caps are highly liquid for retail traders.
3) The risk/reward skew on options are incredible if timed well.
My last analysis on Netflix was in March 2020:
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NFLX UpdateI took a starter position at the retest of 477.50 and added on the STRONG bounce off the purple trendline.
Expecting to see 500-505 this week. And possibly 520 if we get news/catalysts.
NFLX has been following the same pattern the last 3 months. I'd say this is one of the slow steady plays, i recommend going with spreads or contracts with further out expiration to avoid time decay.
Scale in on support, scale out on runs!