Netflix, Inc. (NFLX) is a momentum favorite that has been one of the strongest stocks in the market over the last several years. NFLX trades very well technically and looks like it is shaping up for another move.
Most are familiar with the Netflix story. The company is leading a media revolution away from traditional cable and movie rentals to a world of all-access streaming straight from your TV. The growth of the tablet market has been another boon for Netflix, which has yet to be threatened with a viable competitor.
Not everyone is in love with NFLX stock, though. The stock carries a heavy short interest, which often leads to short squeezes when it gets through important levels.
I’m long and see another buy pivot area to potentially add through $240-$242. A trade through there on heavy volume and we can see new highs again soon. The stop would be $232.
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Disclosure: Long NFLX