Fundamental analysts love to bash Netflix, Inc. (NFLX), and traders love to short it, but despite all the naysayers, both company and stock performance have been a big success story over the past year. Most recently talk from Facebook’s Mark Zuckerberg about increasing partnership with Netflix and others triggered the latest short squeeze in the stock.
While Netflix has showed relative strength and continued to squeeze, short term I see a potent Technical Outside Day developing. It traded through Friday’s high and then came off hard below it. I call this the RedDog Reversal.
The next level to watch is $263-$264, then $255. For these bears to have any pressure here, it needs to stay below $273.50. Perhaps a spot to look short if you missed the first entry.
Disclosure: Short NFLX