It is clear that we deal with unfolding impulsive structure off 2008 lows. There are no doubts that this strong move up is the heart of the wave ( C ) of ( 3 ) which is traditionally represent almost parabolic move up.
The question is whether Netflix has completed that large wave ( 3 ) up and is due for a large pullback in wave ( 4 ) down.
Let’s start with the beginning of the five wave up structure and identify a starting point of that fractal, waves ( 1 ) up and ( 2 ) down.
Off the bottom of the corrective wave ( 2 ) down we should expect wave ( A ) of ( 3 ) up, the first weaker leg of the major rally.
We can clearly see a nice five wave structure of that wave ( A ) of ( 3 ). And we have a textbook looking drop in wave ( B ) of 3 with barely identifiable structure. Once waves ( A ) of ( 3 ) and ( B ) of ( 3 ) get completed time comes for the strongest part of teh rally in wave ( C ) of ( 3 ).
That rally in wave ( C ) of ( 3 ) should be subdivided into five waves of smaller degree, 1 up, 2 down, 3 up, 4 down and 5 up.
My micro count suggests that so far we have only completed wave 3 of ( C ) of ( 3 ). And the decline off the October top has a nice A-B-C corrective structure which I count as wave 4.
A this point I tend to count that wave 4 down as completed because it retraced 50% of the preceding rally in wave 3 up and wave C of 4 hit 100% projection of wave A of 4.
There is a potential for wave 4 down to make a nominal new lower low. But that wave 4 down looks pretty much completed and has a nice structure to be counted as having completed.
From this point we may expect another A-B-C move up completing wave 5 of ( C ) of ( 3 ) that would complete that huge rally started at the beginning of 2015. The first leg of that move higher in wave A should be unable to breakout through the top made by the wave 3 in July 2018. And after a quick corrective move in wave B of 5 we would get the final strong rally in wave C of 5 that may stretch to over $500.