By: Vicki Haddow
I got long Netflix, Inc. (NFLX) this afternoon after the late reversal. The stock has pulled in 50 points off its most recent high, and we have been watching it for a potential buy scenario. It showed relative strength this afternoon as it did not make new lows when the market did, and then rallied in the last hour back through yesterday’s low. Another good sign was that the stock bounced off its 50-day moving average. This type of reversal trade is a calculated way to buy a pull-in on a strong stock. A good entry is here at these levels on NFLX with a stop at $200.75 and targets $209 then $215.
*DISCLOSURE: Long NFLX
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