It's 11:43am ET 12/31/19 and you can see price has filled in the 320.80 - 324.18 gap and touched the 38.2% Fib retracement. These can act as support.
But the 50% Fib would be more likely and stochastics are still high, although no longer over bought. I also noticed a lower gap at 304.21 - 306.60 as shown on the chart. These can attract price lower.
So here's what I'm doing. If we close at or above yesterday's close at 323.31 we will form a bullish engulfing pattern as well as be closing over the 8ema. If that happens I want to get out and look for a signal to re-short NFLX. If that doesn't happen then I want to stay in for a likely lower move.
To accomplish that, and not have to handle it in real time at 4pm on New Years Eve Day, I entered a conditional day market order to sell the put spread if 2 conditions are met:
1) Price of NFLX is greater than or equal to 323.31.
2) The time is greater than or equal to 15:55:55 today.
*** 4:05pm UPDATE: I made a mistake. I posted 323.31 as yesterday's close, but that's not what I was thinking. I was looking at yesterday's open (329.08), not the close. I made an even worse mistake. I copied the 323.31 from this post into my actual order instead of the 329.08 I intended. So my order triggered at 3:55 and exited my position. Not so bad really. I'll see what to do to now on Thu.
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