Hey All,
I wanted to get your feedback on this analysis.
I am solely basing my opinion based on the RSI indicator, MACD and candlesticks on the daily chart.
Although earnings help
NFLX
to go up slightly. It had to restest a strong resistance at 562.46. Once it reached the resistance the bears took control which resulted in a pretty strong bearish pinbar, usually signaling a reverse in trend. Along with the pin bar the RSI is way oversold and the MACD is looking like it is being set up for a bearish divergence, where the price action is trending up, but the MACD is trending down. In addition, there was also a gap up during earnings and that gap will need to be filled.
This signals to me that the there will be a short, even if just to fill the gap up.
What do you guys think?
I wanted to get your feedback on this analysis.
I am solely basing my opinion based on the RSI indicator, MACD and candlesticks on the daily chart.
Although earnings help
NFLX
to go up slightly. It had to restest a strong resistance at 562.46. Once it reached the resistance the bears took control which resulted in a pretty strong bearish pinbar, usually signaling a reverse in trend. Along with the pin bar the RSI is way oversold and the MACD is looking like it is being set up for a bearish divergence, where the price action is trending up, but the MACD is trending down. In addition, there was also a gap up during earnings and that gap will need to be filled. This signals to me that the there will be a short, even if just to fill the gap up.
What do you guys think?