NFLX - Time to analyze the last of the FAANG stocks not already reviewed here. 2 key patterns are driving the action on this one. A 1.75 year long symmetrical triangle completed in the Spring of '20, with an upside breakout targeting 515 for reversal. Since that number was achieved last July, the stock has thrashed about like a Mako Shark on the floor of a trawler, 60 above and 60 below its target. In so doing, it has etched out a textbook diamond pattern, as seen below.
The symmetrical triangle's influence should prevail in the end, and $515 should prove to be an excellent long-term short entry, so anything above that is bonus. The diamond pattern also resolved to the upside, with a 644 reversal target, which I'm somewhat skeptical will ever be seen. Reason being, larger pattern targets tend to prevail over shorter term, smaller patterns forming subsequently that project beyond the larger pattern's target. But what the diamond formation will do at a minimum is extend the time the stock is suspended over the cliff, before the law of density/buoyancy brings it crashing down to terra firma. 135 days were spent inside the diamond, and 21 thus far post breakout. The window for a move to the target remains open for 50% of the days spent inside the diamond. That means 46 more trading days of flopping around, or a potential move toward that 644 target. Afterwards, it's... well... Wile E Coyote can vividly describe what happens next.
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