Chart of the Day: This Bullpen Name Glides into a Support Zone
This stock continues to be bullish, even with some heavy-volume selling.
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We normally consider large volume selling that pushes price down to be bearish, with a high probability of continuation. But when a stock such as bullpen name Netflix NFLX gets extended, such as it was in November, it is natural to have some selling occur. For the bulls, they simply do not want to see very important support levels violated when the stock is on its way to an oversold condition.
For the short run, the indicators for Netflix are bearish. Yet, they are simply bringing down an overbought condition to the 14-day McGinley dynamic (shown below). This trendline has been a reliable spot for the stock to recover each time it tests the band (moving average). The candles are teal, which means cautiously bullish on the GoNoGo composite of indicators.
We always defer to the price chart as our main guide, even if the other secondary indicators tell us something different (as they do now). It is important to see Netflix flatten out here on this strong McGinley Dynamic support and push higher in the coming days.
We are observing Netflix from the bullpen but may considering adding it to the Portfolio at anytime.
