Netflix (NFLX) looking for double correction [Video]

Elliott Wave Forecast Team ElliottWave-Forecast.com

Netflix (NFLX) decline from 7.20.2023 high is unfolding as a double three Elliott Wave structure. Down from 7.20.2023 high, wave (A) ended at 411.88 and rally in wave (B) ended at 445.25. Wave (C) lower ended at 398.15 which completed wave ((W)). Rally in wave ((X)) ended at 453.53 with internal subdivision as a zigzag strcuture. Up from wave ((W)), wave (A) ended at 437.02 and pullback in wave (B) ended at 404.50. Wave (C) lower took the form of a 5 waves impulse which ended at 453.53 as the 30 minutes chart below shows. This completed wave ((X)) in higher degree. The stock then turned lower in wave ((Y)).

Down from wave ((X)), wave 1 ended at 436.7 and rally in wave 2 ended at 449.89. Internal subdivision of wave 2 unfolded as a zigzag. Up from wave 1, wave ((a)) ended at 446.81, pullback in wave ((b)) ended at 438.85 and wave ((c)) higher ended at 449.88 which completed wave 2. Down from wave 2, wave ((i)) ended at 429.17 and wave ((ii)) ended at 437.59. Wave ((iii)) ended at 414.81 and wave ((iv)) ended at 421.55. Expect the stock to extend lower in wave ((v)) which should complete wave 3. Afterwards, it should rally in wave 4 before another leg lower to end wave 5 of (A). Near term, as far as pivot at 453.53 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside.

Netflix (NFLX) 30 minutes Elliott Wave chart

NFLX Elliott Wave video

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold treads water below $4,300

Gold grabs some buying attention and advances marginally at the end of the week, partially retracing the weekly decline, although it is still navigating below the key $4,300 mark per troy ounce. The fresh selling bias on the Greenback and the modest decline in US Treasury yields appear to support the humble advance in the precious metal.

Week ahead: Rate hike bets face a crucial data week

Despite the solid drop from the mid-September high, oil prices remained in the driver’s seat for another week, setting the tone in financial markets. Six months have passed since the late-February start of the US-Iran conflict, and there is still no breakthrough in the stalled talks, despite pressure from regional leaders and the rest of the world.

CFTC Report: Defensive currency positioning takes hold

The week in one sentence: Sterling and Euro shorts deepened in the week to September 22, while Yen longs were cut sharply. Oil positioning improved despite a steep price decline, and Gold exposure remained crowded. The main signal was a more defensive currency positioning backdrop.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.