NFLX reports their quarterly earnings after the close on October 16th. After a huge July monthly move, the past two months have seen NFLX consolidate around the high of that large range monthly candle. Which way will price go … I think that we should get some volatility in either direction regardless of which way it ends up going. I would have to think that downside volatility could be a bit more vicious, due to the length of the upward run so far, but I remain open-minded.
You sometimes get the MoMo tech names to run higher into earnings, but maybe, NFLX will actually pullback into this next earnings report.
NFLX – Weekly Chart
NFLX – Daily Chart
There has been two large range days the past two Mondays … both with above average volume. Today price broke below the ATR support on the daily chart, and it sure looks like sellers are leaning on the stock here before the earnings report in a couple of weeks.
NFLX – 195 Minute Chart
The low for price today was just above the last pivot low … tomorrow could be an interesting day to keep an eye on NFLX. A break of that low, could lead to more selling, and a nice intra-day trade lower. A push down that fails, could see price squeeze short traders for the balance of the day.
Cheers … Leaf_West