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NFLX – Chart of the Week for January 25, 2024

by | Jan 24, 2024

This week, I’m doing something a little different than our usual ‘upcoming trade opportunity’.

Instead, I’m looking back to examine a recently completed, highly-successful trade on NFLX.

To be 100% clear: This trade opportunity has closed. I’m sharing it with you this week so you can see how I spotted it so you can see the power of the Roadmap setup.

 

This Week’s Chart

This week’s Chart of the Week is Netflix (NFLX).

NFLX had left a giant gap down on it’s first earnings report of 2022 in January. (orange box on the chart linked down below)

Starting sometime in January 2023 I started looking for NFLX to go back up and fill the gap around $510.

As we raced higher in July 2023 — I was thinking “well I missed my chance”.

Then NFLX did something I did not really expect. It did a full retrace to the 3-day Roadmap line and found support in October 2023.

The big green candle shot up like the big bullish reversal candle it is on this 3-day chart. (the long green candle in the middle of October)

I took my entry at $401, buying shares because I wasn’t sure how long the move would take. If you had been tuning in to the Morning Monster livestreams I do on YouTube every day, you might have heard me talk about this as it unfolded. I spoke about it many times throughout 2023.

My original exit was going to be $505 (a conservative target that would close out my trade before the gap was filled.)

As a side note: Coming off the lows, I got jammed up in an unrelated margin call and and had to liquidate 4 of the 5 shares I had bought. (another story, but we all goof up sometimes).

Monday afternoon, (January 22) one trading day before NFLX was to report earnings, I carefully looked at the chart and thought to myself “this has 70% odds of hitting $523 and about 40% odds of hitting $571 after earnings.”

With that thought, I decided to split the difference and revised my exit order, upping it from $505 to $550.

NFLX reported earnings Tuesday after the close and immediately spiked up to $528.

By Wednesday morning’s open, it had continued rising steadily, opening at $538.

Throughout the morning it kept rising. My order closed automatically when NFLX hit $550 per share.

NFLX peaked at $562.50 after backing off and ending the day at $544.

I got lucky and made about 35% gains on this trade that I had open for 3 months. Not bad for shares.

 

The Chart

You can go check out my chart marked up with notes (entries, targets, etc) right here: https://www.tradingview.com/x/WOadjlsn/

More Free Trade Ideas

I give out free trade ideas like this all the time on my daily morning show “Morning Monster”, as well as my “30 Minutes of Awesome” show Tuesdays at 5pm Eastern. You can get notified every time I go live with those shows by clicking here to subscribe to my YouTube channel.

Hope to see you there.

— Jeffry Turnmire

 

PS> *If you want more potential setups like this one every week, consider grabbing a subscription to my Market Roadmap indicator. Market Roadmap is my custom-built TradingView indicator that helps me spot many of the trades I post, including this one. If you’d like to grab Market Roadmap for yourself — and get access to some of my private Discord channels, too  — just click here to pick it up for $5!

In my Discord channels, I give out EVEN MORE free trade ideas — so think about it: Between the free YouTube content, the Discord channels and the Market Roadmap indicator, you could have more than a handful of trade ideas every week!

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