Netflix: New All-time High!

As expected, Netflix reached a new all-time high at $1,067, completing the magenta wave [iii]. Since then, the stock has already pulled back by nearly 20%. The ongoing magenta wave [iv] should extend further into our new magenta Target Zone, which spans $789.04 to $704.43. Since we anticipate a sustainable rebound from this range, it presents an opportunity to initiate or expand long positions. Such long entries could be hedged with a stop 1% below the Zone’s lower boundary, as there is a 30% chance that Netflix will drop below the Zone to complete the green wave alt.[2].