Let’s rerun $NFLX – November 12, 2024
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day.
I want to follow up on a chart we showed you last week. It was just before the election and we did a Chart of the Day saying, Don’t watch the news, watch the Netflix ( NASDAQ: NFLX ) chart instead.
If you took this trade it’s actually working out great here. It’s well-extended well above the 8-day exponential period moving average right now. I think it’s a bit too late to take this trade, but if you did take this idea I would definitely consider a stop loss right around that 457.00 level. That’s the low from the breakout day.
Maybe you don’t want to give all that back. Maybe you want to have a bit of a staggered stop setup, you could consider one right around 788.00. That will keep you involved if you have a lower stop if the stop does pull back.
If we look at the market right now, the market looks like it’s trying to rest a bit. It had a really nice move. We had a lot of really strong breakouts, but it seems, in my opinion, like it’s probably due for a bit of a retest of the 8-day here on QQQ ( NASDAQ: QQQ ) and on the SPY ( NYSEARCA: SPY ).
I’d like to see the market come into the 8-day, and if that happens, then you may end up getting taken out of a bit of stock here. But maybe you don’t want to get taken out of the entire position. Maybe you want to have a little cash on the side, and then buy any bounces pending if this long-term trend on Netflix ( NASDAQ: NFLX )does continue.
That’s how I would manage this trade if you’re in it right now if you took the idea that we shared last week. If you didn’t, I think at this point, like many stocks in the market, you’ve just got to wait for that pullback, whenever it comes.
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