Technical traders might want to watch Netflix, Inc. (NFLX). On April 19th, the company announced earnings that made Wall Street mad. NFLX finished trading at $348.61 on the 19th, released their first quarter report card, investors gave the streaming company an F, shares opened more than $100 lower and settled at $226.19 on the 20th.
Shares of Netflix drifted a little lower before settling in a trading range predominantly bound by $175 on the bottom and $200 on top. Although NFLX remains in the same channel, its price is bumping its head against a pair of technical resistance levels, a descending trend line connecting tops and its 50-day moving average.
A move above both would likely be viewed as bullish by Wall Street computer algorithms and drive NFLX higher. Two-hundred bucks would still act as resistance but might not have the same durability as it had since early May. If the stock can get by $200, then there aren’t many obstacles before $225. Get by $225 and then a direct path to $250 emerges. Two-fifty is the gateway to closing the $100 earnings gap down.
On the downside, a close below $165 is about as low as we’d be willing to go.
Short-term/swing trading is only for the most aggressive investors who are willing to lose money in short periods of time.