Netflix Down After Earning, But Its Hunting Support

Netflix is coming down after earnings and is currently trading more than 10% lower. Whenever we see such a sharp reversal, it’s important to zoom out and look at the broader trend. From the 2023 lows, there is still a very strong and impulsive recovery, so this could be just a temporary deeper corrective pause before the uptrend resumes.

In Elliott Wave terms, it looks like a potential fourth wave retracement that could start to stabilize somewhere around the previous wave three high near the 1060 area, or possibly a bit lower, closer to the 1K level. This whole zone could be quite attractive for a rebound, especially since some of the gaps above the current price may still be filled — something that often happens when a stock remains in an uptrend.

In my view, there’s still a good chance for a nice recovery and continuation higher in the weeks to come.

Grega

Highlights:
Trend: Bullish (consolidation in wave four approaching support)
Support: 1060, 1000
Resistance: 1260
Note: Stock can stabilize after wave 4 and try to fill the earnings gap at some point in the future.