Netflix (NFLX) continues to exhibit an incomplete bearish sequence from the June 30, 2025 high, and the structure still calls for additional downside. The broader decline maintains a potential target at the 100% Fibonacci extension near $50, which remains the primary extreme area for the current cycle. In the short term, the sequence from the September 3, 2026 high is progressing as an impulse. Within this decline, wave (1) ended at $66.54, and the subsequent rally in wave (2) concluded at $73.08, as reflected in the thirty‑minute chart referenced earlier.
The stock has since broken below the prior wave (1) low, which confirms that the next leg lower is underway. From the wave (2) peak, wave ((i)) finished at $69.69, followed by a rally in wave ((ii)) that ended at $70.66 in a running flat formation. The current expectation is for the stock to continue declining to complete wave ((iii)). After wave ((iii)) ends, a corrective rally in wave ((iv)) should develop before the stock turns lower again in wave ((v)) to extend the broader bearish structure.
As long as the pivot at $73.08 remains intact, any near‑term rally is expected to fail and give way to further weakness. This view aligns the short‑term impulse with the larger bearish sequence, reinforcing the prospect of continued downside pressure as the market works toward the projected extreme area.
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