NFLX — bounce to 73 or lose 65 as earnings land tonight?Netflix, Inc.BATS:NFLXEdoLab-MarketsNFLX reports tonight after the close, and the last two times the stock fell the next day: −9.7% on April 17 and −7.3% on July 17. From the April 16 close ($107.79) price has lost −35.2% over 129 sessions. It now trades at $69.85, 16.7% below its EMA 200 ($82.92) and under all its averages. The July low, $65.08, is the lowest in more than two years. Signs of exhaustion: the RSI 14 printed 31.1 on October 2, above the July low (28.7) while the close sat at almost the same level: a small bullish divergence. Today the RSI 14 is at 43.6 and the RSI 2 at 24.1, and price already trades above its monthly VWAP ($69.76). This is a cheap spot, not a turn. What would prove us wrong: a daily close below $65.08, which would leave price at two-year lows. 👍 If it closes above the EMA 20 ($71.16) after the report, the next stop is the EMA 50 ($73.43). 👎 If it loses $65.08, the decline since April gains another step. Setup Rating — 3/5 ⭐⭐⭐⭒⭒ (divergence and short-term oversold readings favor a bounce, against an intact downtrend and a report that can move the price either way) It stops being valid if it closes below $65.08.