Netflix Down After Earning, But Its Hunting Support

Oct 22

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.

Nov 25

Trade active

Netflix Is Finishing Its Correction After The Stock Split
Netflix came lower few weeks back after disappointing earnings, which fits well with the idea of a deeper fourth-wave retracement. There’s is now an unfilled gap near 123, and I think that level could be reached when the trend is ready to resume higher. From an Elliott wave perspective, the broader trend remains bullish, and with three waves down now from the highs and ending diagonal in (C) wave it seems like a new reversal may not be that far away. Ideally price will turn up for a new recovery, ideally from around 100 level.