Netflix More Downside? Always consider the MACRO.
An image of Netflix price action on 1 week with Major Support Levels Highlighted
Hello. With Netflix's recent buzz, its a stock that everyone is hyperfixating on. With no surprise ofcourse, and like everyone else i do consider it now more than ever a stock to have our attentions on and observe.
Million dollar question literally. Is now the time to BUY? Being such a powerhouse many people DCA into this stock regardless. But i say WHY just DCA. Why not consider the most optimal area to buy? Maximize your capital....
So my opinion, i do believe it is a little too early to answer this question. From what i can gather on the Macro (1 week timeframe in this example).
We have reached a Support area for sure. But in order to consider this area as a potential Long area, we need more data in the form of solid bullish candle prints on 1 week timeframe.
I would also like a test of and breakout/confirmation of the resistance trendline pushing us down.
AND most importantly the RSI indicates a longer period of sell off as per PREVIOUS Price data or history of netflix.
BUT do note that previous history is not an indication that price action will repeat exactly how it did before. BUT we do have to consider it.
WE have just pierced the 20 level, and technically RSI can get to lower levels.
Previously we continues to sell off for 188 days after piercing the 20 level.
This may hypothetically coincide with price moving towards and attempting to test support at the previous Major Support trendline.
