BABA NFLX update: 12/22/2015

BABA: We count BABA as having completed intermediate i, ii, iii and iv of major 1. Price is now in minute iii of minor 3 of intermediate v with an ideal target between $97 and $100. But, first BABA needs to break over $85 and then $86 to solidify this count. Meanwhile, all TIs are pointing up, wanting to see higher prices.

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NFLX: The advance since august has been overlapping to say the least, but each wave up has been clearly 5 waves. Since 5th waves, in this case intermediate v, only need to make a higher high, we could regard the advance over the past months as a sloppy 5th wave which completed major 3.  Price would thus now be in major 4. However, we can also count it as a set of nested minor 1,2, minute i,ii. The market will decide which. The chart below is very busy, but what we did was calculate the Fib-retrace levels for each higher low (August, September, October, November) to the recent “i?”/”3?” high: orange, green, purple, red; respectively. With that we can then determine clusters of price levels for support. In this case we see the first cluster at ~$118, which has been broken. The next cluster is at $116-$114, which is where price is at right now. Below that is at ~$110, which is also where the blue trendline resides. Note that the RSI5, A.I. and FSTO are all in OS territory and the A.I. is now ready to set up an ideal buy signal. As such we expect NLFX to bottom between $116 and $110. Which is right about now. That would then most likely favor the nested 1,2,i,ii count as the current correction is too shallow for a major 4 wave.

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