I use Volume Profile to assess support and resistance levels in popular stocks. Volume Profile plots along a vertical axis and represents volume-at-price, rather than volume-at-time.

The amount of volume at various price levels gives one an indication of the amount of support or resistance to expect from buyers and sellers who transacted at these prices previously.  

In reviewing the long-term Volume Profile for NFLX on 9/1, I noted the large unfilled gap around $

69. The problem for owners of NFLX is that the largest volume in the stock also occurred at that level, so it becomes a price magnet. That’s the longer term picture.

NFLX-9.14.15.png

Short-term, however, Netflix (NFLX) is re-testing a High Volume Node at $94.65 and is poised for a bounce (see chart). NFLX calls might be an attractive weekly option play.

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