FB, NFLX update August 8

FB: Price keeps adhering to the blue Ending Diagonal Triangle trendlines and all advances lack an impulsive structure (no 5 waves up). Support is now at $120, followed by $117.5, $115, $112.50 and $107.5. We still don’t like FB up here as a buy; its rather a sell in our opinion. Note: recent gap-up on earnings are sold off instead of bullish follow through (late July black candle, late April black candle, late-January peak). Seems like there’s serious selling into earnings strength, not accumulation…

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NFLX: Also this ticker, like KR and SBUX, appears to take the slow route to our target zone. Instead of breaking down directly after earnings mid-july it decided to find support at $80 and then close the gap, which it did now (red box). We still see a $60 target for this stock for Primary IV.

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