Netflix : Is a Major Market Correction coming? 📉
Updated
Following our last analysis, Netflix has precisely achieved the forecasted targets, with the wave ((iii)) extending to 227 to 261%. This suggests that a correction towards wave ((iv)) might be imminent, expected to range between 38% and 61.8%, thus laying the groundwork for a wave 5 and the culmination of a significant cycle in the form of a potential wave (2).
A closer examination of the daily chart reinforces our primary scenario: the completion of Wave II at the low of $162.80. We are currently in the process of developing Wave (1), followed by Wave (2), and so forth.
In our alternative scenario, we consider the possibility of a Regular Flat, especially when analyzing the complex correction currently unfolding. This might indicate that rather than concluding Wave (2) at $162.80, it was actually Wave (A), and we are now witnessing Wave (B) achieving exactly 100% of Wave I. Such alignment could signal a 5-wave decline towards a double bottom, marking a significant correction of 70%.
While such a correction would be substantial, it is essential to explore all scenarios to be prepared for any market developments. Despite the potential for a significant pullback, our underlying outlook remains optimistic, expecting a continued upward momentum for Netflix.
A closer examination of the daily chart reinforces our primary scenario: the completion of Wave II at the low of $162.80. We are currently in the process of developing Wave (1), followed by Wave (2), and so forth.
In our alternative scenario, we consider the possibility of a Regular Flat, especially when analyzing the complex correction currently unfolding. This might indicate that rather than concluding Wave (2) at $162.80, it was actually Wave (A), and we are now witnessing Wave (B) achieving exactly 100% of Wave I. Such alignment could signal a 5-wave decline towards a double bottom, marking a significant correction of 70%.
While such a correction would be substantial, it is essential to explore all scenarios to be prepared for any market developments. Despite the potential for a significant pullback, our underlying outlook remains optimistic, expecting a continued upward momentum for Netflix.
Note
For Netflix, we continue to believe that to complete the overarching Wave (1), we need to finish Waves ((iii)) and ((iv)) and then have Wave ((v)) as our conclusion. However, we should first experience a retracement stronger than the minor retracements we've seen in the past weeks. We still expect to reach the 38% to a maximum of 61.8% level for Wave ((iv)) at Netflix, to then close Wave ((v)) and thus the overarching Wave (1). After that, Wave (2) will follow, but our focus now is on entering at Wave ((iv)). We will not yet cancel the limit from the last order but will not issue a new one either, as we first want to see a sign of weakness in Netflix before taking action. The price could still rise to the 361% level and possibly touch the upper trend line before falling. Therefore, we are waiting for now.
Note
In a short period of time it could come down to our primarly scenario that we are going to see another pullback in the short term to finally complete the long lasting bullish uptrend started in May 2022. It is a reminder that such retracement and pullbacks are neccessary in the long term and on 99% of all assets they will occur, the question is simply when? If you get to catch those kind of reversal it can be a great trade.
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