🔍 Weekly Trade: NFLX Bullish Momentum Building
Netflix is this week’s top trade setup as earnings approach. With implied volatility rising and a history of explosive post-earnings moves, NFLX is on watch.
Market Outlook: Bullish
Sector: Technology Services
Risk Level: Moderate
🔍 Breakdown of Entry- Long Continuation
- Stock must break & Close above $997 level for the long entry
- Bullish Momentum- Stock recovered the 50 EMA
- Extraordinary Bounce despite market-wide bearish sentiment
- Higher Low forming under resistance Swing High AVWAP (Red)
- Volume supporting bullish conviction
- Breaking Above Swing High AVWAP showing buyer dominance
- Price Targets are the $1064.54 level towards the upside
🚨 Risk Management
- Stop is placed below recent and relevant higher low
- $919.29 is the level that invalidates the current bullish thesis, and would be a perfect level to place stop
- Use proper sizing for risk management (ideally <2% risk per trade)
- Although be on the lookout for any quick downturns, if this happens we should wait and look to see if there is a higher low formed and strength after the bounce.
📝 Final Thoughts
NFLX continues to hold strong post-earnings, with price action showing clear bullish structure and buyers defending higher lows. With momentum building and market sentiment stabilizing, a break and hold above the $997 level could open the path toward the $1,064.54–$1,206.34 zone.
This setup is ideal for traders who lean on trend-following and technical confluence, offering a clean risk-to-reward structure. As long as NFLX stays above key support, this remains a high-probability continuation play heading into the week.
