In our March 12 analysis we expected NFLX not to continue higher than the previous $102 high but to break below the neckline of a possible Head & Shoulder:

We were short biased due to our expectation of this move being a B-wave but we clearly mentioned that any potential move above $100 and a break above the previous high at $102 could lead to the targeting of the upper-bound of the channel at $108-$110 area.

Our short trade did not fill for 30cents at $96.00 (1st target – see March 11 analysis) and we got stopped out. It was a risky trade going against the trend and this bullish channel but the R-R was promising.

NFLX (2) 20-03-2016

As we see from the above 1h chart, NFLX held the lower bound of the channel by forming a complex trading zone (red wave 4) until it broke out to the previous high and made a slightly higher high.

We have Slow Stochastic and MACD indicators together to confirm possible tops in the coming days. Both of them are on bullish areas and we might see a fast move towards the red wave 5 this week to complete blue wave 3 or C. It is very important for NFLX to burst towards that target box sooner than later in order for this to be an impulse wave and not just a hidden b-wave of red wave 4 that might break the channel of the downside.

NFLX 20-03-2016

  • For the bullish scenario, we expect the prices to stay above $100.20 and the target box to be reached in the 1st trading days of next week.
  • In case the lower-bound of the channel does not hold then NFLX might be playing a complex wave 4 and if it goes deeper that $93 this will signal the bearish scenario.

Trade Setup:

Enter Long in these levels and the support area of the lower boundary of the channel

Target 1 = $105.00

Target 2 = $108.00

Register Now to get all the Free LIVE forex Signals in your email

Register Now to get all the Free LIVE forex Signals in your email

Get quality Forex Signals from our pro traders

You have successfully subscribed to your list.