I don’t pick tops in my trading that I actually act on, meaning go out and place a trade, because it’s against my entire moral trading fabric to short strong trends, but I noticed NFLX was a trending top on Alexa, and if memory serves me correctly the last time I saw a ticker symbol on Alexa it was USO and that put in a top for that particular time frame.
Therefore I’m going to go out on a hypothetical limb here and say NFLX is gonna fall short of $300 and put in some sort of short term top here. It touched the top end of the upward channel and the RSI has some massive negative divergence on the chart. If you are long this stock…you had better start taking some well earned profit.
In my opinion this stock hasn’t had a proper correction since before 10′ and is way overdue a major pullback. My target would be around $210. I know it sounds ridiculous, but a 30% haircut by momentum standings is normal. I wouldn’t be surprised to see this stock do a split, and then you would take the 30% of that adjusted price…but mark my words, NFLX is way overbought here.