There were a few names I was looking at going into this week and so far, $NFLX seems to be the only one following my plan. I wanted to take a minute and explore my case for more downside.
$NFLX has gone on quite the run recently and now it is showing signs of coming back down. The last week or so has really developed a pretty good Bear Flag wedge. With volume weakening into the flag, I am looking for a drop out within this week or next. The bottom of the rising channel is hitting almost perfectly with the 50d SMA and the resistance from 5/28 and 6/19. If this works out, that will be my target. If volume keeps coming in, I will be looking for a break for much lower prices. Maybe even a retest of the previous earnings breakout.