Dear Trader
Globally, the internet streaming wars have been heating up and the emergence of new entrants has seen established players take some heat as the potential for profit margins to become squeezed becomes all the more likely. Here I am referring to market leader Netflix which has seen it's share price come under pressure since it's last set of results in July as well as since both Disney and Apple have emerged as players in the space. Having a look at the price action, we see the share have peaked at $384 on 11 July and today testing it's lowest level since 02 January. At 262.33 my view is that the fall is appears overdone and could very well be an opportunity for traders to take a short term position with a view that the price could rebound. Before the opportunity passes, these are the trading levels:
Buy NFLX at $263 or better
Use a stop-loss of $257 to protect capital
Take profit at or near $284
NFLX
Globally, the internet streaming wars have been heating up and the emergence of new entrants has seen established players take some heat as the potential for profit margins to become squeezed becomes all the more likely. Here I am referring to market leader Netflix which has seen it's share price come under pressure since it's last set of results in July as well as since both Disney and Apple have emerged as players in the space. Having a look at the price action, we see the share have peaked at $384 on 11 July and today testing it's lowest level since 02 January. At 262.33 my view is that the fall is appears overdone and could very well be an opportunity for traders to take a short term position with a view that the price could rebound. Before the opportunity passes, these are the trading levels:
Buy NFLX at $263 or better
Use a stop-loss of $257 to protect capital
Take profit at or near $284
NFLX