How to trade the Netflix bear flag post results

2020年7月16日

Here we have a bear flag continuation pattern to the downside in play on Netflix ahead of results.

Netflix can be extremely volatile when it posts after the closing bell today. The best trade set up here would be to look to buy the break of the bear flag below if it starts to retreat back into the bear flag. That's what us pro traders call a fakeout buy signal.

Alternatively if the bear flag fails and prices rally above we might also consider going long. Even though we see a bear flag what we must really see is the very strong moving averages on the 1hr and 4hr charts.

Any heavy selling of the bear flag would negate any longs. I'm not interested in shorting Netflix though while we are in Lockdown and everyone is watching TV lol. Nor when the Moving averages (particularly the daily and weekly) are so bullish.....

Let the trend be your friend and look to buy dips as and when you can.

2020年7月16日

註釋

Huge gap down then to the first support box.

To me this presents a buying opportunity for either those interested in gap fills (depending on the price action when market opens tomorrow) or longer term holders.

2020年7月17日

註釋

Nice trade over the last 24 hrs for the gap fill. 50% of the way there to the break of the flag, buyers can now choose to either stay long (for the longer term) or take profits.