Trade Setup: Short NFLX netflix on a rounded top break down at 111.30 2-22-2012
By Wen on 22 February 2012
| Symbol | Market Price | Entry | Stop | Position Size | Exit | Gain |
| Short NFLX | 69.96 | 111.30 | 119.50 | 30% | 111.30 | 0 |
I think the stock is one of the weakest in the technology sector.
1. Its below 20 day moving average down on huge volume. (trend confirms short term down)
2. Expect the huge gap to fill at around 100 and 90.
3. We filled the upside gap at 120 and now breakdown on consolidation
I think the stock might bounce and there might be better short prices because of such large drop today. However, the trend is down and I have no problem paying low prices at shorts.
The stop is going to be around 120, with a 30% portfolio, you have a risk of about 3.3% to make 3-5%. I will reevaluate the trade if the price goes above 115 and will exit if it doesn't drop soon.
I got stopped out at break even, NFLX should not behave like this when it breaks down below a head and shoulder pattern and fills the gap. Looks like a double bototm, not sure.
