No matter how fundamentally good the story may be and no matter the love affair with the retail consumer, objective technical traders need to respect the charts. We are keeping a very watchful eye on NetFlix as it appears to be running out of steam and primed for a trade lower. NFLX is potentially developing a right shoulder in what will most likely be a Head and Shoulders topping pattern. Aggressive traders will look to sell short against the 114 level as that should keep a lid on the stock for a move back to the major support level at/near the lower 90’s. Should NFLX decisively break that major support area, we could see a much lower move over time but for now, watch closely as this stock develops in the days to come.
