How is Netflix doing?

 

While going through the 'Dot Com' series, I come across videos indicating Netflix is in trouble. it interests me in checking on this counter.

 The last news about Netflix earlier was quite some time ago when it included a movie involving children reaching adolescence twerking. people complaint that the movie is not appropriate.

There was also another case when the employees of the company attempted to cancel Dave Chappelle, the company this time stood firm against the employees' threat.

However, I believe the biggest threat is the internet itself where sites are providing free download making it difficult for Netflix to charge for movie view. As quickly as a new release is available, download of the movie is there somewhere. It is tough to enforce copy right when come to the internet as it is accessible internationally.

However, when I looked at the chart, Netflix is not that bad when compared to other online services.

Fig 1. Netflix Weekly Chart

Netflix peaked at 700 roughly on the 3rd Q of 2021. It began a steep fall by May 2022, resting at 162. It has since been climbing back up slowly. The question here is: Is this a genuine reversal?

First of all, the fall followed a pattern of a 5-wave pattern that seems to be complete. This does not normally adhere to a down trend which follows a 3-wave, unless this is the first of the 3. 

B-wave will have to be a 3-wave pattern. With the magnitude of the fall, B-wave have to be of similar magnitude, size way. 

The recent climb of Netflix since May 2022 has presented 3 waves, it is possible that the wave is incomplete, I have not seen clear sign of reversal. A Doji top formed 2 weeks ago followed by a long bar the week after, however, it stopped short of penetrating the 8 and 21-week moving average. furthermore, the bodies of the 2 bars overlap, indicating that it is not decisive.

It may come to test the moving averages the coming week and I feel that it may retreat after doing so.  I will watch for the 38.2% retracement 367 as the next resistance level for Netflix.