Shark and cypher patterns often occur simultaneously given their similar shapes and ratio requirements. Here w/ NFLX it's finally moved into shark territory. Seems like it's getting ready to start the 2nd leg of a measured move or break out of a cup n' handle pattern. The move today already sets into motion some kind of inv H&S to 398 potentially.
Important levels to watch are 398.40 (.886 retrace) and 379.5 (.786 retrace) as they mark the boundaries of the unfilled gap from last July. They're also the absolute thresholds of the shark and cypher patterns (respectively). A move above 380 likely means NFLX will start eating in chunks as it vacuum rallies to 400.
The aforementioned levels are viable shorts. Stop loss for longs should be 365. A daily close below 365 at this point should be considered pretty bearish since it would suggest the Fed buying and this rally was a huge bull trap. I'd be looking for a pullback to 305 if that happens.
Important levels to watch are 398.40 (.886 retrace) and 379.5 (.786 retrace) as they mark the boundaries of the unfilled gap from last July. They're also the absolute thresholds of the shark and cypher patterns (respectively). A move above 380 likely means NFLX will start eating in chunks as it vacuum rallies to 400.
The aforementioned levels are viable shorts. Stop loss for longs should be 365. A daily close below 365 at this point should be considered pretty bearish since it would suggest the Fed buying and this rally was a huge bull trap. I'd be looking for a pullback to 305 if that happens.