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
![](https://static.wixstatic.com/media/eb4ead_141c853e9f28414c86dadc8c96e5c045~mv2.jpg/v1/fill/w_900,h_480,al_c,q_85,enc_auto/eb4ead_141c853e9f28414c86dadc8c96e5c045~mv2.jpg)
NFLX - zoom
![](https://static.wixstatic.com/media/eb4ead_2ebdf7367de7491fb2c70c5ed4b3b00e~mv2.jpg/v1/fill/w_900,h_480,al_c,q_85,enc_auto/eb4ead_2ebdf7367de7491fb2c70c5ed4b3b00e~mv2.jpg)
Ratio of NFLX/SPY
![](https://static.wixstatic.com/media/eb4ead_30061690605d43acb50907d0ebad00bd~mv2.jpg/v1/fill/w_900,h_480,al_c,q_85,enc_auto/eb4ead_30061690605d43acb50907d0ebad00bd~mv2.jpg)
Ratio of NFLX/XLC
![](https://static.wixstatic.com/media/eb4ead_a7907bea8bce417daaa53763df190986~mv2.jpg/v1/fill/w_900,h_480,al_c,q_85,enc_auto/eb4ead_a7907bea8bce417daaa53763df190986~mv2.jpg)
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