The broader the market as defined by the SP500 continued up and over the important levels in the past during August and september. However, the market has not really gained much ground, but fighting on to try and win the momentum. At the same time, we will now check in yet a sensitive time window for the reaction downward in conjunction with the autumnal equinox on 22 september, who in turn happens to coincide with an interesting cycle in Netflix!
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What the autumn and the spring equinox has with stock to make one can ask. But according to W. D. Gann these days important, just as the winter and summer solstice. Now, this should be seen more as a curiosity because my analysis is not based on it, however, happens to the classical time cycles in the other analysis point out that in the next few days are important.
For approximately 30 days ago, we identified that the Netflix fallen in the 30 days top around the July 21. We were then positive to a closing of the gap around 178 dollars. The analysis worked out well, and the share has now continued up further a little bit.
In the days, tomorrow specifically, an additional approximately 30 days have passed since the last bottom, and thus also the 60 days since the peak on July 21. Thus, we have both a 30 day and a 60 day cycle, which can make themselves known.
Is there something in general, which suggests that the share may be ready for a slightly bigger reaction down the next time? Yes, both the Slow stochastic indicator, as well as the RSI indicator is and rolls at high levels, and also shows the hint of a negative disparities. However, they have not yet given any sell signals.
From a vågperspektiv, we know that it is relatively rarely that one share only rebounds down in a wave. Now, if the peak in July marked the peak of a relatively a little larger bike, there are good chances that the stock will back down again.
We have resistance at 191 dollars. Take the share price above this level, we get a new buy signal, which signals higher prices to come. On the downside, we have a very important support at 164 dollars. Above 164 dollars should 174 dollars level act as support, in each case temporarily.
The idea is to prepare to take a negative position in Netflix on a negative candle-stick bar in the graph, if this occurs around 21 september. Also, note that it does not have to be exactly on 21 september, but we are working with the range of 20-22 september. Stops can be placed at 191 dollars and our target level is set to 164 dollars. Netflix reports third quarter October 16, and it should be regardless of how any trade is to close his position before the report. Our oscillators should be in such a situation, in addition, the trigger for a short-term negative development.
Säljnivån below are indicative and have no fixed trigger level.
Netflix – an overview
P/E (est 2017)
Direct avk. (est 2017)