NFLX - an Opportunity to Get Long
$NFLX has recently dipped hard. The question on many people’s minds is, where will things be headed for this stock, and how do we trade it?
Let’s take a look at the current chart of $NFLX on the daily timeframe:
For the past year, prices have been trending well above the 200MA and 100MA. More importantly, pullbacks to the 100MA have been rare, and pullbacks to the 50MA have been more frequent. However, prices are currently trading right at the 50MA, a prime location to get long some shares.
Should one get long here with a conservative position size, the stop should be placed just below the 50MA with enough buffer accounting for the noise of the stock, at $169.44. For a more aggressive position size, a tighter stop can be placed at $173.78.