You don't have to be an expert to realize that the post-ER flush has materialized an incredibly ugly weekly chart. The gap down on high volume creates multiple bearish interpretations, most notably a confirmed multi-year Head and Shoulders pattern, with the Head peak at $134.12 and a slanted neckline break.
Crucially, the price has broken and confirmed a weekly close below that massive structural neckline. This is a very bearish technical breakdown, IMO. There's zero logical reason to rush into this position right now. A breakdown of this size often implies a protracted wash-out period to establish a stable base. At the current post-earnings price near $68, I don't want to touch this for at least another $15 of downside.
My precise target area of interest for a potential starter position is the $53.40 midline within the defined upper band ($58.72) and lower band ($48.08) range shown on the chart.
Why $53.40? I am picking this specific midline for clear structural reasons:
Arithmetic Precision: Obviously, it is the exact mid-point of the $58.72 to $48.08 "Buy Zone" range defined on the chart, which represents historical high-volume structural support.
Historical Confluence: This area aligns with significant historical support lows established during prior consolidation phases (such as the 2022-2023 period before the breakout), which may generate a significant base-building bounce.
Risk-Defined Tactical Entry: It provides a specific, risk-defined area to execute a two-pronged strategy.
The Execution Strategy: If NFLX washes down into that specific area (my $53.40 target):
- I will take a 1/3 - 1/2 common equity starter position.
- I will simultaneously write cash-secured puts to extract the elevated post-earnings implied Vol and establish a much lower net basis, should the position be assigned.
This strategy allows for slow accumulation and income generation while waiting for confirmation. For me, patience is the key on this one. If it flushes there, it does. If it doesn't, I am not chasing it. The focus is structural interest, not FOMO. Just sharing my thoughts. NFA.
Crucially, the price has broken and confirmed a weekly close below that massive structural neckline. This is a very bearish technical breakdown, IMO. There's zero logical reason to rush into this position right now. A breakdown of this size often implies a protracted wash-out period to establish a stable base. At the current post-earnings price near $68, I don't want to touch this for at least another $15 of downside.
My precise target area of interest for a potential starter position is the $53.40 midline within the defined upper band ($58.72) and lower band ($48.08) range shown on the chart.
Why $53.40? I am picking this specific midline for clear structural reasons:
Arithmetic Precision: Obviously, it is the exact mid-point of the $58.72 to $48.08 "Buy Zone" range defined on the chart, which represents historical high-volume structural support.
Historical Confluence: This area aligns with significant historical support lows established during prior consolidation phases (such as the 2022-2023 period before the breakout), which may generate a significant base-building bounce.
Risk-Defined Tactical Entry: It provides a specific, risk-defined area to execute a two-pronged strategy.
The Execution Strategy: If NFLX washes down into that specific area (my $53.40 target):
- I will take a 1/3 - 1/2 common equity starter position.
- I will simultaneously write cash-secured puts to extract the elevated post-earnings implied Vol and establish a much lower net basis, should the position be assigned.
This strategy allows for slow accumulation and income generation while waiting for confirmation. For me, patience is the key on this one. If it flushes there, it does. If it doesn't, I am not chasing it. The focus is structural interest, not FOMO. Just sharing my thoughts. NFA.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.