Netflix (Nasdaq: NFLX) jumped almost 10% after reporting strong growth in subscribers but that’s not enough to change the bearish pattern on the chart.
As you can see on the chart above, the stock remains locked in a downtrend and momentum confirms more downside is likely.
In the chart, momentum is shown as the stochastic indicator at the bottom.
My team of traders say that put options on the stock could be the best trade in the current weak market since the target on Netflix is about $235, more than 30% below the current price.
© Chart courtesy of Today’s Profits. All rights reserved.