Netflix Elliott Wave View: Dips Expected To Remain SupportedGood Afternoon Traders,
NFLX short-term Elliott wave analysis suggests that the pullback to $335.67 low ended blue wave (2) pullback. The internals of that pullback unfolded as a Flat correction. Where red wave B bounce ended in 3 swings at $374.09 high.
Down from there, red wave C unfolded in 5 waves impulse structure. And the initial decline to $360.01 low ended black wave ((i)). Up from there, black wave ((ii)) ended at $364.50, black wave ((iii)) ended at 341.60. A bounce to $350.54 high ended black wave ((iv)). Then finally a move lower to $335.67 low ended black wave ((v)) and completed red wave C of (2).
Up from there, the stock is showing higher high sequence favoring more upside within blue wave (3). Where the initial rally to $374.09 high ended black wave ((i)). The internals of that rally higher unfolded as 5 waves structure with lesser degree cycles showing sub-division of 5 waves structure in its leg higher i.e blue wave (i), (iii) & (v).
Down from $374.09 high, the stock did a 3 wave pullback as zigzag correction & completed the black wave ((ii)) at $350 low. After reaching the blue box at $356.01-348.90 100%-161.8% Fibonacci extension area of blue wave (a)-(b).
Above from there, the stock has made a new high above $374.09 high suggesting that next leg higher can have started. Near-term, while dips remain above black wave ((ii)) low ($350) and more importantly above $335.67 low the stock is expected to resume the upside.
Alternatively, if it breaks below black wave ((ii)) low ($350) then it can be doing a Flat correction from $374.08 high still within black wave ((ii)) before resuming higher again provided the pivot at $335.67 low stays intact.
We don’t like selling it and prefer more upside against $335.67 low.
