Another stock that looks poised to trigger a major breakout trade is Internet TV broadcasting player Netflix (NFLX), which provides Internet subscription services for TV shows and movies in the U.S. and internationally. This stock has been smashed by the short-sellers during the last six months, with shares down by a whopping 45%.
If you look at the chart for Netflix, you'll notice that this stock recently ran into heavy resistance at around $85 to $86.50 a share in July. After failing to clear those resistance levels, shares of NFLX plunged and gapped down from over $80 to below $60 a share with monster selling volume. Following that gap down, shares of NFLX went on to make a new low of $52.81 a share. That said, shares of NFLX have now started to rebound sharply with the stock trading at around $63 a share. That rebound has pushed NFLX within range of triggering a major breakout trade.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV