It seems NFLX has gone parabolic over these past few months and it's obvious that it should pull-back as it is overvalued. The reason it has gone so high is because it is in an Ending Diagonal within a Ending Diagonal, to make it even more confusing the bigger one is a variant of the Ending Diagonal called a "throw-over", they tend to trap bulls because they think a new resistance turned support has been made as it breaches the upper boundary of the Ending Diagonal line; only to "throw itself over" the upper boundary line shortly after. The rise can be comparable to Bitcoin's rise in 2017 and that is because Bitcoin was also in an Ending Diagonal; I have copied a fractal of the Bitcoin 2017/2018 crash which happened shortly after the upper boundary was breached so you may compare it to NFLX's current price action. Keep in mind Ending Diagonals have a very volatile and vicious nature, which tends to whipsaw many traders out of their positions as it bounces through the boundaries; it being close to the apex (converging boundary lines) we should see our throw-over happen fairly soon. According to Elliot Wave theory we should have a wave 2 retracement of our whole 5 wave impulse/motive wave, the fibonacci ratios have been plotted - 61.8% is typical for a wave 2 but wave 2 can also retrace up to 100%; no more than that.
Trade active:
Looks like we are on wave 2 of A for a zig-zag retracement.
Trade active:
This could very well be the descent beginning again, however be vigilant as we should close at the 61.8%.