Credit: Netflix ( NFLX ) is in a position to create a cup and handle pattern. If this pattern holds, this could mean the potential to reach $500 becomes stronger. In early March, the stock began to sell off and between April and May, the stock formed an inverse head and shoulder pattern. Netflix has been on a rampant uptrend until it approached near its 52 week high. The stock has been on a minor sell off from around $450. The price action has seemed to form the cup of a cup and handle pattern. The current sell off seems to be now forming the handle. I am looking for the stock to continue to sell off to possibly $420. If volume and/or the price can push higher from there and return back to the neckline of the cup, the likelihood of this stock going higher gains strength. However, if $420 fails, the sellers will see to it that it returns to $400.
Dwayne Tucker is an individual investor in Akron, OH. He began is journey in 2006. After numerous investment mistakes, he followed a simple method to make consistent gains. He credits his achievements to hard work, self discipline and his hunger for education. From his experiences, he helps other beginning investors clear the difficult hurdle by teaching his simple technique. Dwayne helps run www.wincrease.com , which is dedicated to helping beginning individual investors.
This article was originally published on MarketIntelligeneCenter.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
