The stock broke out of a choppy, week-long consolidation on Friday and now appears headed for the 21o.23 target shown (click on inset). We’ve been using that target for nearly two weeks to stay comfortably with the trend, and odds appear very good that it will be achieved. This is so because of the powerful thrust through the 187.23 midpoint resistance on October 5. Although there is no confirmation of the pattern and its target via precise interaction with p, my gut feeling is that NFLX will reverse in tradable fashion from within 0.10-0.20 of 210.23._______ UPDATE (Oct 16, 9:35 p.m.): The stock is headed into serious resistance, not only from the 210.23 target we’ve been using for the last week to stay on top of a very steep uptrend, but from the 205.02 target shown. The latter comes from a pattern of much larger degree, but its ability to resist the bullish tide will be additive. I’d be surprised if NFLX pushes significantly above the target range, especially on the first try. Pleased note that the higher target is likely to show more-precise stopping power because of the poor quality of the other’s point ‘A’ low. In any event, look for a top of at least intermediate importance not far above. _______ UPDATE (Oct 23, 10:58 p.m.): If NFLX falls to within a dime of the 187.17 target shown before Wednesday’s close, buy two Nov 3 190 calls. I estimate they will be trading for around 2.20-2.40 at the time. Stop yourself out if the stock trades below 187.00. _______ UPDATE (Oct 24): The trade recommended above was a non-starter when NFLX failed to dip below 191.
