Today’s Index Buying Saved Netflix As She Toyed With 176ish (NFLX)
This post/chart is an update to a January 6th post highlighting the 175 level as a downside line in the sand for NFLX. Today off the open we saw selling again taking NFLX down to 176.07 on moderate selling. Netflix was not unique to the sharp selling off the open; AMZN, PCLN and GOOG saw similar action though AAPL was the exact opposite, straight up off open. As you can see from the chart above, this level has been tested many times as it has been resistance turned into support in mid November 2010.
NFLX’s price bounced rather quickly off lows this morning as the index’s chopped around looking to find direction, that direction was up. If the index’s were not at the back of beta tech, cough apple,
cough… NFLX probably would have melted back to the 176 level again. The nasdaq put in a higher of 2300.75 after the cash market closed, very typical.. Where we are back above 2300!
Notice how the chart broke out of the apex of the wedge to the upside to be sold back to the break out point.. this could be a retest of support before we get another wave of beta buying or this could mean sellers have not left the building…