NFLX is down 11% in 7 days and is almost at support from the important, high conviction breakout in April @390.
Chart 1 shows that NFLX repeatedly stalled at the 390 level from October 2019 to April 2020. The eventual breakout was very constructive; leading to a huge 3-day rally (see zoom chart). NFLX is now close to 390 support, which should be a good entry point. Looking at NFLX versus the S&P500 (SPY – chart 3) and the Communications sector (XLC – chart 4) it has also fallen back to breakout levels versus these benchmarks, which should signal support. On a comeback rally, NFLX should see new highs.
NFLX - zoom
Ratio of NFLX/SPY
Ratio of NFLX/XLC