You probably know the NFLX story by now, so I won’t go into the details of why the stock has been sledgehammered over the past several weeks. What recently caught my eye about the chart was the divergence between price and MACD. The daily chart is posted below. You will see a similar divergence using Wilder’s RSI – 14. The stock is up about 6.5% as I write this on a day when the general market is down around. 1.7%. When I went sniffing around for possible news for the rise in the stock, I found a rumor that Verizon may be buying Netflix. Don’t trade on rumors, of course.
http://www.youtube.com/watch?v=1q-k-uN73Gk
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