Starting back in the beginning of February we saw a top at $133.43, and since then we have seen a 35% decline. As we slowly made our way down to the lows, the MACD seemed to find a bottom and started to show a change of momentum. This lines up nice with the 5 waves printed off the highs and gives me more confidence going forward to see the $100 mark.
If you look at the beginning of the month for August, September, and October we saw a triple bottom where the price action bounced off of $52. You rarely will see this if bears are in control…
Since then, Netflix has been trading within a nice channel that seems to be currently working on its wave (v) of 3. This is a big moment for the bulls to step up and hold the support lines. The first big one is the $75 region and the second line of defense is $68-$70. If these can hold on the next pullback, then the bulls have only one more obstacle to overcome. There is gap resistance right up ahead starting at $90.60, and ending at the big $100 mark.
In the next month going forward, I expect Netflix to complete its wave 3 targeting the $108 region, before we see a bigger pullback in the movie monster.