>>> I realize the charts of NFLX, IDNX and MAGS must be hard to "read" since all of these companies have IMO have been influenced by news in the last week. <<<
They are if playing them short term. Since you are looking long term, they are much easier to read because we should be looking at the weekly and monthly charts.
What is interesting about the monthly chart is that the price spike on the good news took price up to the 20 month moving average and then corrected.
So far, MACD and money flows are confirming price movement.
Monthly chart:
stockcharts.com[h,a]maclyiay[pb10!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
The weekly chart actually shows you your buy set up for NFLX. Back in October 2004, price hit a high of $19.60 (shown on the chart) and then we saw a steep correction. Then in May of 2005, price hit a high of $19.27 (also shown on the chart) and then corrected. Now price is at $19.01 and failed at the first attempt to get above $20.
Weekly chart:
stockcharts.com[h,a]waclyiay[d20040326,20050726][pb40!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
This set up is text book and merely requires the patience to pull it off.
The first scenario is if price pulls back. Note how the recent move up occured after a successful test of the 20 week moving average. That 20 week moving average is now rising and is now above the 40 week moving average. This is a bullish alignment. If price pulls back into that 20 week moving average, that's a buy point.
The reason you buy off a rising 20 week moving average is because if price breaks down below that support level, you get out. You have kept your loss at a minimum and you don't have to be a long term holder because you are underwater on the position. We're trying to be long term holders with an immediate profit and stick with the position as long as it stays above a rising 20 week moving average.
The second buy set up is if price continues higher. If price can close above $20, I think you start a new leg up. The high on the news related price movement was $20.80. The buy point is when price trades at $20.82. You will then have your higher high with the help of a rising 20 and 40 week moving average following up from behind.
If price can trade above that pivot high ($20.80) in the next 2 - 3 weeks, I think NFLX will have the strength to move higher.
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There is nothing at this time which makes IDNX an attractice long term hold. It is below every major resistance level out there, on the longer term charts.
The monthly chart clearly shows a long term entry shouldn't be made until price can trade up above $6. That will put it above the resistance established by the 10 and 20 month moving averages.
Monthly chart:
stockcharts.com[h,a]maclyiay[d20020726,20050726][pb10!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
The weekly chart is showing the 40 week moving average at $6 as well. With so many long term moving averages pointing to $6, a long term buy at this point is high risk and has a low probability of success. Once price rises above $6, you then have a low risk, high probability trade because all of those moving averages will then serve as support.
Weekly chart:
stockcharts.com[h,a]waclyiay[d20040326,20050726][pb40!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
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The long term chart for MAGS is showing price running into resistance at this time. Price is just below a falling 10 month moving average with a negative MACD. Money flows are uninspiring.
A long term buy doesn't become a low risk, high probability trade until price can trade above $12.50 according to the monthly chart.
Monthly chart:
stockcharts.com[h,a]maclyiay[d20020726,20050726][pb10!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
Note how price is also bumping up against resistance on the weekly chart. It is now testing a falling 40 week moving average. A rise above the 40 week moving average sets up a good short term trade as resistance is then up around $12.47 to 12.90 (shown on the chart).
This does set up a buy opportunity for a long term trade ... IF ... one uses a trailing stop.
Price has a high probability of pulling back once it hits that resistance level, (provided it can get above the current one), and if it does, one shouldn't want to give back all of the gains if they bought above the 40 week moving average. Therefore, some sort of trailing stop would need to be in place and wait for another buying opportunity.
Weekly chart:
stockcharts.com[h,a]waclyiay[d20040426,20050726][pb40!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
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