NFLX is showing signs of tiring given its long term head-and-shoulders chart formation.
Forward estimates show 4.26 in 2019, or a P/E of 83, thus NFLX is ripe for P/E contraction. Use the 50-day moving average as your cover point to keep risk to a minimum.
Should the general market head lower given the number of distribution days and action in leading names we have seen in the last few weeks, stocks such as NFLX can be quite profitable as shorts.
Short-Sale Set Up - NFLX 10-19-18
|Published:||19 Oct 2018 12:05 ET|
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