Netflix’s stock (NFLX) has reached new all-time highs, recently trading above $915. This growth is driven by strong holiday season performance expectations, bolstered by historical trends where Netflix sees an average two-month gain of 14% from December to January. Key growth factors include the success of its ad-supported tier, now reaching 70 million monthly users, and subscriber growth in markets like Japan, fueled by regional content. Additionally, market optimism linked to a pro-business economic outlook is supporting the stock’s momentum
NFLX reached the top of the uptrend channel and a rising wedge medium-term 944 level. A break above this level is required for a continuation higher in still third long-term upside wave but there is also a possibility of a reversal lower from here and a fifth short-term wave (of the five long-term) top confirmation if we get a broader systematic risk-off in the market and also if investors acknowledge that all the recent good developments in broadening subscribers base has been priced in. Learn to Trade stocks profitably.
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NFLX weekly chart reveals a strong upside resistance indicated by the KNOWPO trading system. At this point, sell positions have a greater probability of success than buying positions. If we get a confirmed break below 884 we should see five waves of downside reversal in the long-term fourth wave pullback before a possible extension higher in the long-term fifth wave targeting 1300. RSI is showing signs of an upside momentum weakening.
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As the famous trader says…
“Successful investing is about managing risk, not avoiding it.”
Benjamin Graham
How to trade this?
It is a fact that a strong upside resistance for Q4 2024 is 944 and If we get a confirmation of a breakout and a sustained extension above this level we could see still a strong upside continuation higher in the extended fifth long-term upside Elliott Wave. You can take the short trade here with a stop loss above 1050 or wait for a confirmed break below 885 and then enter a short trade. You can trade with put options as well. For inquiries about account management or copy trading please write to [email protected] or contact me on WhatsApp or Live chat.
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