netflix

I talked the other day about taking profits off the table for your market winners for the year. One of those stocks that I had recommended in my 4 stocks to buy in 2009 is Netflix (NFLX).

Once up at $50 not to long ago, the online video rental company has taken a bit of a dive. At this same time, the market as a whole was moving higher, so many traders were obviously taking their money out of Netflix and moving it elsewhere. The question is how much further can Netflix go? Is the move up done?

Regardless of the decline downwards, Netflix has still posted solid numbers and news. If there is any hopes for a bounce back, the charts will show us

Both RSI and full stochastic are at the low level of the range, which 1) tells us that the stock could become oversold and 2) chances of heading higher is more probable.

How much higher we can go is another question. As you can see in the chart, Netflix broke through the support (blue line) of the previous trend on more than normal volume. So that line could now play a pretty strong resistance.