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Swing Trade Idea (NFLX) – March 14, 2024

Our bearish trade for Thursday, March 14th is Netflix Inc. (NFLX). NFLX is part of the Communication Sector, which traded at 1.08% over the last month, with NFLX overperforming at 9.25% over the same period.

NFLX has been in a steady bullish trend since June 2022, and has now traded into a long-term area of resistance at $625. As it is already showing signs of weakness, we expect to see NFLX pulling back from this level over the duration of the trade.

As a close, if NFLX were to trade above $630 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $12.64.