Don't Ignore This Chart!

Netflix Forms Outside Reversal at Resistance

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Bearish candlestick patterns marked the prior two reaction highs in Netflix and the stock formed an outside reversal on Wednesday. Strictly speaking, this is not bearish engulfing because Tuesday’s candlestick is actually black. A bearish engulfing requires a white candlestick to be engulfed by a black candlestick. Therefore, I will be safe and just call it an outside reversal. The consequences are the same.

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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