Hello fellow traders. In this technical article we’re going to take a quick look at the Elliott Wave charts of NETFLIX ($NFLX) stock. As our members know, we have been calling for the rally in the stock due to impulsive bullish sequences in the cycles from the May 12th low. We recommended members to avoid selling Netflix, while keep favoring the long side in near term. In the further text we are going to explain the Elliott Wave Forecast.
Break of 12.13. peak made the stock bullish against the 273.13 low. Currently the stock is giving us short term pull back (2) which is correcting the cycle from the mentioned December’s low. The stock is expected to find buyers in 3,7,11 swings. Decline from the peak looks like 5 waves , which suggests we got only first leg so far A of (2). We expect to see 3 waves bounce in B , and then another leg down, before further rally takes place.
We got short term bounce - wave B red, and another leg down C red as expected. The stock completed 3 waves pull back at 313.3 low and we got good rally toward new highs. Structure from the 313.3 low looks impulsive. We expect to stock to keep trading higher as far as the price stays above 313.3 low and as far as 273.2 pivot holds.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room