Netflix Weekly Support Convergence Test so far so goodHi guys. This is a MACRO Technical Analysis on Netflix (NFLX) on the 1 Week TImeframe.
This week we have TESTED Support on the 21 EMA and the Support trendline of the UPTREND channel.
Netflix is heavily supported not only by these 2 mentioned SUPPORT lines but also a 3rd Support, the black horizontal support line as well.
Everytime we've touched the Support line of the Channel, we've bounced to the Top of the Channel.
EXCEPT our most recent touch, that took us only half way before printing a Topping Tail Candle and selling off.
Watch how we close this weeks candle. If we close around or above $428.
That would be the best case scenario, as that would indicate an Engulfing Bullish Candle.
This could invalidate the Topping Tail Bearish Momentum.
BUT for now we need to watch what happens. Keep in mind that the Topping Tails can cause further price DECLINES.
AND we absolutely don't want a UPPER WICK for our current weekly candle. This would imply selling pressure and may indicate continuation of the TOPPING TAIL.
Watch also the VOLUME -> From here we should see increasing volume and or SPIKE in volume so price can continue up the channel.
For whatever reason if we BREAK DOWN from this SUPPORT CONVERGENCE area, the next level would be the 50 SMA.
Also NOTE, along with Topping Tail Candle, indicators are showing BEARish signs.
MACD has crossed BEARISH
RSI Broke BELOW Support Trendline.
For us to continue our UPTREND
MACD needs to CROSS BUllish and print green bars
RSI cannot print below the Horizontal Black line, as that would indicate a Lower low. And Ideally, get back above the Support Trendline and or continue UP.
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