Netflix is moving nicely lower with five waves down in wave C and is now potentially forming the final wave (5) after the latest earnings report. Although the company beat Q2 GAAP EPS expectations, weaker Q3 and full-year guidance pressured shares as investors focused on the softer outlook despite a strong quarter.
The decline has unfolded as expected and could now be approaching the final fifth wave, with the stock potentially stabilizing in the 50–60 range. While additional weakness is still possible in the short term, a more meaningful rebound could develop once wave 5 of C is fully complete, potentially later after the summer period.
Highlights:
• Daily chart suggests Netflix is completing the final wave 5 of an impulse within wave C of an ABC correction
• Price could still extend lower toward the 50–60 area
• A larger corrective rebound may develop once wave 5 of C is finished
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