NFLX – Netflix

This 5 year weekly candlestick chart for Netflix has a Fibonacci Retracement Tool placed on the most recent portion of the uptrend. NFLX appears to be developing a Bearish Impulse Wave Pattern. NFLX should retest the bottom from 3 weeks ago around $312. If a Bearish Impulse Wave Pattern is developing, which I think is, then the $312 bottom should not hold and one more low for the downtrend should be coming. The ending price level for the Bearish Impulse Wave Pattern would be between the 50% and 61.8% Retracement Lines.

Only a $378.76 print in the next 2 weeks would negate a break below the $312 bottom on the retest. But a failure to print a $378.76 and then continuing a slide in the next 2 weeks will point towards a confirmation that the Bearish Impulse Wave Pattern is in process.

In summary, with a little more patience I think a better entry price can be had.