We know $NFLX is in an uptrend. In yesterday’s blog post we described an opportunity to sell NFLX as price was due for a pause with expectation for price to move lower to short term support.
In today’s video (as trade was entered) I describe why NFLX offered another sell opportunity early in the trading session to move to test support again (albeit with different price action than yesterday).
I sold NFLX @333.53 (Arrow at entry) and was able to scale out at 332.50 (Arrow 2) to setup up a no risk trade to see if price would follow through lower below support, or take small $$ gains if not.
While expectations weren’t high to follow through lower on a shortened trading session before Xmas (NFLX reached a low of 331.60 and closed at 333.28 above support), it was nonetheless a high probability “to get a trade to no risk” to see if follow through lower would take place, and take small $$ gains if not.