Photo: Flickr/Michel Ngilen
On July 5th I took a shot at calling a top (something I never do) on NFLX.It wasn’t so much as me trying to time a top as it was a certain little contrarian indicator I picked up and it seemed to work quite well with this call.
My biggest mistake was not acting on it as that day it was somewhere around $287 at the time of the post and while it went up and peaked at $300, that was basically it for this stock.
My target was $210 and it’s far exceeded that and with bearish sentiment at an extreme for this stock I wanted to see what the charts were saying about taking a long position.
Now I know many are sticking a fork in NFLX after the recent declines but I think this fall was exactly what this stock needed. My targets have this bottoming out in the $117-$123 level and I think that would be a great long term buy.
That would take us a little below the 61.8% Fib Retracement level and we should still stay above the RSI 40 level – indicating that we remain in a bull trend.
Don’t let the media sway you on this one…it’s not a buy yet…but it’s a lot closer to a buy than a sell.
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