Here’s your trade on $NFLX – October 5, 2022
NFLX
In all of this random weird violent volatile market, with all of these stocks flying all over the place, I was kind of looking for something that is flying a little bit underneath the radar. And lo and behold, Netflix ( NASDAQ: NFLX ) seems to be doing the trick.
Here’s the deal, acknowledging that the 200-day moving average is overhead. But also noting that it is 26 percent higher than the current price, that’s quite a bit of headroom. Acknowledging that this is potential probable resistance, this stock, looks ready to break out. Not right here, there is really nothing that differentiates this from any of these other days here. None of them have pushed through 250.00 for more than just a second or two here. So 250.00 is definitely still my trigger on this.
This is what I would suggest you do if you want to start a little position right now, nobody is going to take your lunch for that. But it would just be a starter position, a very, very small position, possibly not even worth taking. Because again, why would you take even a small position today when you could have taken it at the same level here, or here, certainly here, all of these? So there is really nothing special about this day versus any other day, other than the fact that it is just further along the X-axis, the time axis. The longer this drifts sideways in a tight range, the more potential energy is compressed.
My suggestion is this, go ahead and set an alert at 250.00. And if the stock breaks out above 250.00 and holds there, I think it’s a good trade. I think it would be a good trade to the long side. You buy the stock but then don’t expect too much from it. It is not like, oh my gosh, I’m in and the next thing I know it’s going to be 700.00. No, not unless they do a big reverse stock split. It’s not going to be that, but if the stock breaks out above 250.00 I think it could be a pretty good trade for you.
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