Gap Closed & Retrace Complete
Well, ladies and gentlemen, we have a completely discretionary (spending) business, that looks ready to resume its downtrend.
As the American public is forced to figure out what they need and what they don’t, paying for streaming movies can be eliminated from the ‘must haves’, with ease.
We’ll look at the big picture first to see what’s actually happening.
Netflix (NFLX) Weekly
The massive downward thrust (dropping over -35%) on April 20th, this year, created a huge gap on the daily chart.
The weekly shows it took thirty-two weeks to fill the gap, starting from the April lows.
The next chart has a terminating wedge, similar to gold (GLD) as discussed previously.
The daily chart shows the wedge close-up.
The lower trendline has been decisively penetrated and action is currently thrusting lower.
We’re at mid-session, 1:12 p.m., EST.
As NFLX, heads into the close, it’s possible there may be an attempt to rally, testing the lower wedge boundary (not advice, not a recommendation).
Charts by StockCharts
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The Danger Point®, trade mark: No. 6,505,279