Forget all of the hype and metrics for a minute and just look at the chart below. Netflix is quite possibly (although not confirmed by any means) to have just finished an ending diagonal which sported a failed 5th wave. If this is the case then the stock will have formed a declining double top of incredible magnitude.
The confirmation of this will be if the chart now breaks below the lower support line of the diagonal, especially if done on high volume and with gusto. The denial of this outcome will likely be a break out of the upper channel which does not then quickly break back down into the channel.
All I can say is that anyone long NFLX better buy puts if the lower green channel line is broken and I personally believe that this is what will happen.
No comments:
Post a Comment