The 4-hour Elliott Wave Charts for Netflix (NFLX) indicate that the rally from the May 2022 low is unfolding as an impulse structure. This pattern suggests a continuous upward trend, prompting a recommendation to buy dips at specified levels rather than sell.
Recent updates show that after a pullback to a low of $955, the stock made a recovery. The anticipated price action was expected to reach between $890.62 and $822.32, leading to potential buying opportunities.
Upward Confirmation Needed
The latest chart confirms a movement upwards following the zigzag correction within the targeted blue box area. Further confirmation of an upward extension requires a break above the $1065.05 high.
What this means is that the rise in price from the lowest point in May 2022 fits the characteristics of a five-wave impulse pattern, which is often a sign of continued strength. Instead of looking for moments to sell short, the strategy should favour looking for pullbacks to buy—which is often a more reliable approach in such a scenario.
The most recent updates show that a pullback led to a recovery after hitting $955. Based on past projections, there was an expectation that the price could retrace even further, reaching between $890.62 and $822.32, where buyers were likely to step in. The fact that support was found at $955 suggests demand kicked in before those lower targets were reached.
Watching Key Levels
What we now see on the chart is a price movement back upwards following what appears to be a corrective zigzag pattern into the ideal retracement region—this area is marked as the “blue box” for visual clarity. In Elliott Wave analysis, when price respects these zones and then reverses upwards, it adds further confidence to the bullish case. However, what would bring even stronger confirmation that the next leg higher is underway would be a move above $1065.05, which was the previous peak.
For traders dealing with options or other derivatives, short-term decision-making now depends on how price behaves around key levels. If momentum continues to build higher and surpasses the noted resistance, there could be further upside potential. However, if price struggles or reverses downward again, it may suggest a more prolonged correction before the larger uptrend resumes. These movements need to be watched closely as they will dictate whether adjustments in positioning are necessary.
