Netflix had a massive day today. The company announced that they were raising prices by a buck or two and the shorts got shredded. This is a great chart to study. You may remember that the stock had a massive breakout back on 7-18. It followed through higher for a few days after the breakout and then started falling for just over four weeks.
What happened next was text book. The pullback enabled NFLX to go to back down and visit the original breakout area around 163-164. This is called “retracing the move” or “filling the gap”. Today’s volume was enormous too. Targets now look like 200-210.
Biotech was kind of mixed today. BIIB and REGN had nice days, but CELG got hammered and weighed on the etf.
One to watch.
AKAO has been sticking in my ear like a tube of salami. It’s not ready yet, but it could be showing signs of a reversal. As you can see below, the stock is approaching major downtrend line resistance. If, (big if), it can break above that downtrend line with volume it could get running very quickly. As you can see it’s squeezing down there as it bounces around the lows. There are about 11 days to cover on this one so the shorts would have to cover.
This one is already on the P&l, but if you are looking for an idea you can buy it here with a stop around the 15 level. I may add to my position and I will let you k ow for those of you who are still long.
NEW NAME TODAY
I added QURE as a new swing long today. I made some really good loot on this one back in 2015. It has since been in a long downtrend, but that may be done as the stock is showing a beautiful basing setup on the daily chart.
As you can see the stock is breaking out of some lateral resistance and could tag 12-13 relatively short term, then higher as long as it can continue with good volume.
