Netflix Traders Watching $85

The majority of stocks are off to a rough start in 2016, and Netflix, Inc NFLX is certainly no exception. After finishing 2015 as the top performer in the entire S&P 500, Netflix shares are already down 22.0 percent in 2016.

According to data from Call Levels, traders now have the most Netflix notifications set for around the $85 level. The stock recently dipped as low as $79.95 before bouncing back above $90 once again. Traders could be watching for another breach of $85 as a sign the stock may once again be making a push to new 52-week lows. Just one month ago, traders were watching the $115 level for Netflix.

Related Link: Robert Coleman's quote about market volatility still rings true today.

In terms of resistance levels to watch, Netflix now likely faces major resistance in the $102-104 region, where its 50-day and 200-day simple moving averages will soon be converging to form a bearish death cross. The last death cross in Netflix’s chart happened in November 2014. The downturn was short-lived, however, and the stock had more than doubled by November 2015.

If Netflix does make another push below $80, the stock might not find support until it reaches $70. A dip that significant would completely fill a gap in the stock’s chart created early last year.

Disclaimer: Any comments, opinions, perspectives and analyses including but not limited to views etc. are that of the authors own, and in no way can be perceived as professional investment advice. Examples of analyses, calculations performed within the Content are only examples and/or instances taken from the Call Levels App. These analyses, calculations etc. should not be treated as professional investment advice, strategy or any variant of such forms as they are based on limited and open source information. All prices, data and calculations are correct at the time of posting.
 

Disclosure: the author holds no position in the stocks mentioned.