Netflix is trading lower after Earnings release yesterday.
The Candle formed during Wednesday trading session is called a Doji (Open and close at almost same price level) and is likely to signa a top and reversal. If price action during today’s trading session is not closing the gap from Wednesday’s close regard the candlestick pattern as an Evening Doji top and reversal pattern.
Combined with RSI and MACD divergence it is a strong top and reversal indicator.
A correction down to the top of the strong support area at around 414.75-409.54 seems likely. A close below is likely to establish a down trend that could take Netflix even lower short-term
A close above the peak of the Doji i.e., above 483.39 will cancel the top and reversal pattern and extend the uptrend.
The medium-term uptrend would still be intact despite a correction down to 414 level.
Strong support gap area around 397.48-379.43 – see weekly. A closing of the gap i.e., a close below 379.40 is needed to demolish the medium-term bullish picture.
Rising 21, 55 and 200 Moving Averages are supporting the underlying bullish trend.
However, if Netflix closes below 379.40 the medium-term bullish trend is likely to be reversed.