Has Netflix Already Bottomed?Netflix has pulled back after a sharp rally, and now some trend followers may see potential for further gains.
The first pattern on today’s chart is the steady decline since earnings on July 19. That slide could be morphing into a successful A-B-C correction pattern.
Next, the second low (C) occurred near $400. That’s not only a “nice round number” where buyers may feel comfortable. It also represents a 50 percent retracement of the move from early May through mid-July.
Traders may watch for the streaming giant to hold roughly $400 (or make a slightly higher low) over the remainder of the summer lull. If it successfully does that, bulls could return heading into the next quarterly report on October. 13.
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