I almost got into Netflix (NFLX) yesterday but he market conditions weren’t right and resistance was still keeping it down. netflix breaking out of the downtrend

But today is a completely different story, and now NFLX is breaking out of resistance and beyond. Obviously getting an upgrade with a $145 price target doesn’t hurt matters, but from a technical standpoint this stock looks like it is prime for a multi-day leg move. 

Get past any bombshells from Janet Yellen on Friday, and this stock should cross $100 again rather quickly. 

I didn’t waste much time jumping in this play this morning. Usually I prefer to give the market about 30 minutes to settle in, but with a gap above yesterday’s highs and the potential for a nice bullish kicker, I decided to jump in early at $96.48 as the stop-loss was nice and tight at 92.93. So far the trade has worked out well, and we’ll see what comes about it in the afternoon trading and whether it can keep from fading as has been the case of late. 

On the technical front, the descending trend-line off of the May highs has held down the stock brilliantly for the better part of three months and is finally broken, assuming the stock can hold on to the day’s gains. The next challenge for NFLX from here will be to form a higher-high for the first time since last December when it was trading in the $130’s. In order for that to happen, the stock will need to break over $100, and with a little bit of momentum, it should be able to do just that. 

Here’s the NFLX chart and technicals:

netflix breakout

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