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This under-the-radar indicator could mean Netflix shares are about to plummet

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The last time Netflix was this overbought, it fell 14% in a month

Investors are pressing play on Netflix, again.

The streaming service has rocketed higher in the past week, tripling the broader market's gains and breaking out of a flat range for the first half of the year.

However, the move also taking Netflix to its most overbought level since early May. When the relative strength index topped out on May 3, it marked a peak in its share price and preceded a nearly 14% fall over the next month.

Todd Gordon, founder of TradingAnalysis.com, isn't worried Netflix will suffer a similar fate. In fact, he would like to see the stock get even more overbought to prove the rush back into Netflix is real.

"What you want to see when we finally get this break up through $400 is that RSI to go up to 70/80, stay there as the buyers finally charge through," Gordon said on CNBC's "Trading Nation" on Thursday. The relative strength index measures the speed and change of price movements. The RSI is considered overbought above 70 and oversold below 30.

"Netflix I think has shown incredible relative strength," Gordon added.

Netflix would have to rally another 10% to reach an all-time high of $400. It would also mark a roughly 50% gain for the year.

The stock also got a boost this week after the company announced that its latest movie — "Murder Mystery," starring Adam Sandler and Jennifer Anniston — had attracted the most viewings ever. Mark Tepper, president of Strategic Wealth Partners, says this is proof of its content strategy paying off.

"They already had a really strong content portfolio, and it's getting even stronger. The fact that they're attracting A-list actors like Adam Sandler and Jennifer Aniston, that shows that they're executing on their growth strategy," said Tepper.

Netflix suffered some weakness relative to Disney earlier this year after the unveiling of its Disney+ streaming service. However, Tepper says Netflix should continue to thrive even with added competition.

"Streaming is not a winner-take-all space. There's room for several companies to benefit, especially when they're targeting two different types of people or maybe even the same people," said Tepper. "We'd be buyers because the fundamental thesis is still intact. So if it can move toward $340 or $330 we'd be picking up shares."

Netflix would need to fall 7% before it reached $340, a level it has not traded firmly beneath since early January.

Disclosure: Strategic Wealth Partners holds Netflix and Disney.

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