It’s All About The Gaps
Chart aficionados know that one of the most powerful tools is identifying gaps in individual stock charts. As I have been preaching for almost three years here, almost all gaps get filled unless a stock gets taken over or goes bankrupt. I am very confident in my calls that NFLX will eventually fill the gap at 500. Another set of gaps is also likely to be filled in the case of META. I am not a believer in the long term investment merits of either company but META is probably going to fill the gap at 325. I don’t know if it will first fill the recent gap created at just above 150 or if that becomes your downside target after first going to 325. Time will tell but both gaps are likely to eventually get filled.