Approaching Resistance - Netflix

Published on Friday, 03 February 2012 08:44 Written by Christian Paolinetti

New York, February 3rd (TradersHuddle.com) - Shares of Netflix Inc. (NASDAQ:NFLX) are trading very close to calculated resistance at $129.48 with the current price action closing at just $124.00 placing the stock near levels that make it difficult to buy.

Netflix Inc. (NASDAQ:NFLX) is an online movie rental service. The company delivers its rentals by regular mail, using DVDs, or by its internet streaming service.

Netflix's current stock range is defined by current calculated support defined at $91.48 and by the resistance level at $129.48, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Netflix, as the stock is well above support, however, as the stock pulls back towards $91.48 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $129.48 then traders will get an opportunity to enter Netflix stock by establishing a position as the stock moves to a higher range.