Netflix - Corrective wave ahead

Technical Analysis: Elliott Wave | NFLX CMP: 705.5 | Dt - 15th Oct'24

Oct 17, 2024

Tl;dr - NFLX, which has been in an impulse wave, is close to its Wave 5 termination. It appears an Ending Diagonal is playing out in Wave 5 and it should be followed by an A-B-C decline, dragging the price lower

Simple speak

Analysts seem to think it is a good time to buy Netflix, with majority giving Buy or Strong Buy rating.
AlgoChirp’s EW analysis suggests Netflix downside potential far outweighs the upside potential at these levels.

NFLX Chart - Zoom Out

NFLX Chart - Zoom In

TA speak - Elliott Wave analysis by AlgoChirp

Wave 5 of the Impulse Wave that started in May 22 is close to its termination. Wave 5 appears to be forming an Ending Diagonal.
Target 1 -4 for this 5th Wave are highlighted in the charts above
The sluggish nature of price movement is typical of a Wave 5 advance.
Alternate count - At this pt there is no strong alternate wave count. If RSI breaks the trendline convincingly then we will need to relook at this count.