Netflix finally caught some what of a bid today as Dish Network announced that NFLX will be integrated in their set top boxes including the Hopper. While it's too soon today to declare the "candle" is over, it would appear it's attempting to put in a bullish engulfing candle which I wrote about just yesterday.
Looking at a 5 year chart, we can see it's at the 38.2% fibonacci level and in my opinion, the 38.2% and 50% are typical areas for stocks to turn around that wish to challenge or break a high. Analysts targets are a mixed bag and range between $215 and $600 but one has to wonder if there will be revisions based on this DISH integration.
it is also oversold on all time frames (daily, weekly and monthly)
Also on the chart you will be some long term trend lines which have been historical areas of support and resistance. I am recommending buying calls here today and IF the stock fails, we take our lumps and log the loss. There seem to be too many good variables on the chart and the news NOT to take a chance.
Note: I have been short the common shares from $435 with a small position remaining. I still recommend calls over common, not for that reason, but because current market conditions are uncertain and when this occurs, call represent less of a loss than common.
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