In this post I am analyzing the weekly and then daily charts of Netflix . The analysis done in this chart is only one of the possible scenarios. However preposterous it may look, it meets all of Elliott wave rules and is therefore possible. The reason to present it here is that going forward extreme caution may be required to trade this stock.
The following is the weekly chart starting Aug 2012. The main reasons that the counts presented on the chart is possible are
i) wave 3 is not the shortest
ii) Wave 4 doesn't overlap wave 2.
In the below daily chart the detailed possible counts are presented for this possible (not guaranteed though!!) extended wave 5 starting July 2016.
It is also possible that Wave iii actually ended on 17 Apr 2018 (where (i) of v is shown at price level of 338.62. If so wave 5 may have completed on 21 Jun 2018 at 423.21.
There is alternate possibility that what I am presenting as extended wave 5 is only wave 3 of larger degree count. That will become clear once correction happens. For now looking at the possibility of extended wave 5 extreme caution is warranted.
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