Netflix (NFLX) is again a buy on 12-9-2018 just like ti was on 11-27-2018 that I posted about here: https://evancarthey.com/why-netflix-nflx-is-a-buy-on-11-27-2018/. That move completed extremely well so if you took it then it hit pefectly. NFLX has again given us a great setup to buy and go long. Netflix is at a point where I call it a “free trade” that I will talk about below. This might be a super quick trade if price moves up even a little bit but you have to take what the market gives you.
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Netflix and the setup
As you can see from the chart above price has retraced down to $264 and has not hit the Fibonacci areas for a retracement to complete the move. Because of that it is now a “free trade” which means the exit will not move even if price continues to move lower. The grey box is the 38-50% Fibonacci retracement area so the bottom of the box is just below the 50%. That is the exit area we are looking at hitting for the move to be complete.
The time frame this is trading off of is the 15 minute and the trade setup I am using is my Lightning Trade Setup. I like to try to stick to the 15 min and 1 hour charts so that the moves complete faster. I have some trades on the Daily time frames but those trades can take years to complete. So the only time I would recommend one of those trades is if they give you a good percentage dividend return.
The Entry and Exit
The price is currently at $264 if you enter now.
The exit is at $268. The hard exit is $270.25 but I like to get out a little early to ensure my exit gets filled. The magenta line is where the exit should be and is just below the grey box that is the 50% Fibonacci retracement area.
Now this isn’t a big gain by any means from where price currently sits. But if price continues to go down then your next entry will be at $251 which is near the 0% Fibonacci retracement area. I also put the magenta line to show where it is located.
Now if price keeps going lower and doesn’t hit $268 then the next entry is at $251. The exit still remains the same at $268 and does not move.
After that if price keeps on going down without going back up and hitting $268 then just get in wherever you want to. But where price stands right now is a free trade as long as you get in under $268. Once price hits $268 then the move is over.
Conclusion
This might be only a very quick trade but it is what it is. You have to take what the market gives. Next week I think the market rebounds up because the S&P 500 has two levels that have given trade setups using the Lightning Trade to the upside. So even if we see some weakness early in the week (the market moves lower Monday and/or Tuesday) I think we will see some pretty big moves up by the week end.
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