As I’m writing this article, the overall markets are selling off.
I have CNBC running in the background, and they are rattling off companies taking a beating.
Sometimes, that’s all it takes to trigger the next trade.
Remember that everywhere we go… everything we do… somewhere, somehow, there’s a publicly traded company associated with it.
Netflix and No Chill?
Below I’ve included an image of the Netflix, Inc. (NFLX) chart.
With the close below $372.50 on April 6, a full channel extension short trade opportunity was confirmed.
I’ve indicated the area where I’d place a stop and a target, including my 1%+ target buffer.
I wanted to make sure the reward at the close of that candle exceeded the risk taken by the stop loss placement. If it didn’t, there would be no trade.
But with the current volatility, the setup showed this trade could potentially achieve the indicated profit target in short order.
As it turns out, this trade was a “quicky.”
With the close below $372.50 on April 6, price followed through to the $347.00 target yesterday.
It even dipped below that level, but this is an area where it may potentially find support.
I’ll keep an eye on this as it continues to evolve, and we’ll circle back on it to see how our analysis plays out.
If it breaks through that support level, we’ll await the same setup to occur again and trade it short towards $313.00.
There’s always a plan!
Join the Alliance
While this was a short trade idea, this is the way I set up all my trades for my premium portfolio building service, Rapid Wealth Alliance.
So, if you’re interested in learning more about how I set up my trades and find confirmation, I definitely recommend checking it out.
For those of you who are looking to trade, however, that’s not what this service is about.
It’s more about finding great companies with great long-term upside potential.
With that in mind, I invite you to join us at Rapid Wealth Alliance to view our model portfolio and join in on our live weekly training sessions!
Rules to Live By
“Turn your wounds into wisdom.” Oprah Winfrey
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.