NFLX update 5/25/2015: could major 3 of Primary V be topping?

NFLX has been on a tear lately, and of course, I sold too early… 😦 But, as Buffet once said: I became rich/made a profit, because I sell too early. Anyway, let’s look at the wave count: See chart below. (Click to enlarge). Price has now reached the 161.8% extension of Major 1, from 2. This is a typical 3rd wave target. If so, the (red) intermediate iii was exactly 1x int. med. i, and it also hit the 138.2% (yellow) extension: 3rd of a 3rd wave typically do that. So that seems to work. However, intermediate v appears to be lacking one or two sets of 4th and 5th waves, so price IMHO will try to go (marginally) higher. Why? (Cont’d below)

NFLX 05242015

Because, of the negative divergences that are developing on the daily chart: red lines vs green line. Price up, but momentum is weakening; on the RSI5, MACD and MACD-histogram. Negative divergence is only so until it isn’t but we need to be mindful of it, especially since the wave count and Fib-extensions suggest major 3 could be nearing completion. That said, looking at the above chart, I expect major 4 to retrace 23.6-38.2% ideally, which will target $500-$550. $520s seems to be ideal target. Then Major 5 should ideally target $650-$700. (Con’t below)

sc

Alternatively, the coming correction is only intermediate iv, with intermediate v up to follow after that. If so, then the $500-$550 target remains the same, but intermediate v should be ideally targeting $705-$745. Hence, and either way, buying the next pullback will be very profitable.

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