In this technical analysis of Netflix (NFLX) stock, we are focusing on the Elliott Wave charts published in the members’ area of the website. The analysis shows that NFLX stock is currently undergoing a wave 4 red pullback, forming a 3-wave pattern. The stock is expected to move towards the blue box-buying zone in the range of 896.73-876.79. After reaching this zone, the stock is anticipated to rally towards new highs or bounce in 3 waves. When the price retraces to the 50% Fibonacci level against the blue connector, positions are secured, stop loss is set at breakeven, and partial profits are taken.
In the recent update on December 18, 2024, NFLX stock did indeed drop down towards the blue box area as predicted. The stock found buyers in the expected zone and had a successful rally from the buying zone. Consequently, any long positions taken from the equal legs area are now risk-free, and partial profits have already been taken. The analysis indicates that wave 4 red is completed at the low of 887.14. The stock is considered bullish as long as it remains above the pivot at 804.46. The system suggests that the stock will continue to attract buyers in 3, 7, 11 swings for a potential extension towards new highs.
It is important to note that not every chart is a trading recommendation. The analysis provides a quick reminder on how to trade based on the charts provided. A red bearish stamp with a blue box indicates a selling setup, while a green bullish stamp with a blue box suggests a buying setup. Charts with black stamps are not tradable. This information serves as a guide for traders to understand the signals and setups provided in the Elliott Wave charts for NFLX stock.
Overall, the Elliott Wave analysis of Netflix (NFLX) stock indicates a potential bullish trend with the completion of wave 4 red. The stock is expected to continue finding buyers in subsequent swings, leading to a further extension towards new highs. Traders can use the information provided in the analysis to make informed decisions about their positions in NFLX stock. By following the trading setups and signals outlined in the Elliott Wave charts, traders can take advantage of the predicted price movements and optimize their trading strategies for success in the stock market.
