Netflix Needs Some Time

Netflix Need A Few More Episodes Before The Plot Turns Bullish

by Shivank Goswami Benzinga Contributor

Netflix (NASDAQ:NFLX) has been at the center of market attention ever since it announced plans to acquire Warner Bros for $72 billion in equity value. What followed has been no less than a roller coaster move: first, reports of possible Justice Department intervention, and now Paramount's counteroffer of $108 billion, which has introduced a new layer of uncertainty into the deal.

With all this unfolding, let's examine how Netflix is positioned under the Adhishthana principles and what the framework suggests for the stock going forward.

Analysing Netflix Stock's Weekly Charts

On the weekly timeframe, Netflix is currently in Phase 15, which places it in the middle of its Guna Triad formation. Under the Adhishthana framework, Phases 14, 15, and 16 together determine whether a stock can achieve a Nirvana move in Phase 18, the pinnacle of its cycle.

For a Nirvana move to emerge, the triads must reflect Satoguna, a clean and sustainable bullish structure.

As I wrote in Adhishthana: The Principles That Govern Wealth, Time & Tragedy:

\"Without noticeable Satoguna in any of the triads, no Nirvana can emerge in Phase 18.\"

Fig.1 Netflix Triad Formation (Source: Adhishthana.com)

Netflix's triads so far present a mixed picture:

Phase 14 was constructive, delivering a 65% rally.

Phase 15, however, has been significantly weaker, with the stock down ~25% so far.

Only once all three phases of the triad complete will we get clarity on whether the structure supports a Phase 18 Nirvana. But when we shift to the monthly charts, the picture becomes clearer on why the current selling pressure is emerging.

Analysing Netflix's Monthly Charts

On the monthly timeframe, Netflix is currently in Phase 7. Under the Adhishthana Principles, Phase 7 is associated with the Fall of Artah and Artharthi, a two-part corrective structure typically unfolding across eight consecutive red bars.

This pattern is already visible.

Fig.2 Netflix Monthly Chart (Source: Adhishthana.com)

Since entering Phase 7, Netflix has been declining month after month:

Two red bars have fully formed.

A third red bar is currently developing.

With this context, two important levels come into the picture: the Phase 6 mid-level at 75.195, and the \"Level of Nirvana\" at 42.685, a level derived from the framework that often acts as a gravitational point during bearish phases.

Investor Outlook

Netflix is currently positioned in a highly interesting but uncertain structure. The larger monthly trend is bearish, while the weekly chart is in the middle of a triad formation. Together, these paint a picture of elevated volatility and a lack of near-term clarity.

For investors:

Those considering fresh entries should wait. Clarity improves only after the Artah–Artharthi decline concludes on the monthly chart or after Phase 16 completes on the weekly chart, which will reveal whether the triads can justify a Phase 18 bullish setup.

Existing investors should be aware that broader cycle behaviour leans toward continued corrective pressure until these structural milestones are cleared.

With the charts still loading, Netflix might need a few more episodes before the plot turns bullish.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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Netflix May Lose $90? Short NFLX & Long WBD?

Netflix lost near 15% in two weeks. While institutions upgrades Warner's price target. As the deal continues to develop, should we be bullish on WBD, bearish on NFLX, or look for an arbitrage opportunity?

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