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Nearest Resistance: $90
Nearest Support: $70
Catalyst: Earnings Miss
Netflix(NFLX - Get Report) went from being one of Wall Street's favorite momentum stocks to being the name that everyone loves to hate -- and we're seeing more of that hate being doled out by investors today. Netflix is another earnings-driven stock today, getting search attention after posting a bigger than expected loss of 8 cents. Analysts had only been expecting the firm to shed 2.65 cents on average for the first quarter.
Today's massive 12.7% selloff has big technical implications for Netflix. First of all, it shoves the stock below support at $100, a price that acted as a sort of "floor" for shares earlier this month. Second, it wipes out any semblance of support nearby for NFLX. That means that continued freefall is the likeliest outcome of this breakdown.
Historic support at $70 may be the next place where NFLX catches a meaningful bid. The big gap in this stock means that trading it is best suited to investors who don't mind putting on a riskier bet in the last week of April.
Netflix, one of the
best-performing S&P 500 stocks of 2012, was also featured yesterday I "
5 Stocks Set to Soar on Bullish Earnings."