Here’s your trade on Netflix (NFLX) (December 13, 2014)
Netflix ( NASDAQ:NFLX ); the reason I want to go in to this is this is a potential bounce. The stocks moving lower, look at this; this is pattern so ominous it looks like it could go to 250.00, but it doesn’t look like it’s going to keep moving. This was the level that it bounced before, the stock was actually a pretty decent trade to the long side, it went up a little bit farther than I thought it would go but now the stock is down to test this level.
I would look to buy this stock buy the stock on Monday. If it gaps down to begin with, we could see that in the broader market, then look for the reversal. But you want to be putting your stop just a little bit below where this low is, and your idea is to take advantage of the bounce. The way this stock is moving, high, lower high, lower high, lower high still, so I wouldn’t expect a whole lot from this stock, maybe 10 or 15 points.
The bottom line is this, you want to put this just a little bit below the bottom line and you’re going to be fine. You look at the weekly chart, it looks a little ominous; this stock looks like it could fall quite a bit more.
If you’re a long-term investor I don’t think you have to be in a hurry to buy this stock. If you’re a short-term trader this could be your trade for maybe 10 or 15 points. Would it go further than that? I don’t know; let’s just go get the first 10 or 15 to begin with. And once again I’ll say it because I love the trolls on Twitter; you need to have a stop just a little bit below this level so you’re risking just a small amount of money in order to make a lot of money.
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