Cloudflare (NET)
Last Sell-Off Before the Major Run
Since its IPO on September 23, 2019, Cloudflare has displayed exceptionally strong bullish momentum, developing its first long-term impulsive structure labeled as green wave 1. From that high, the market entered a sharp sell-off, forming orange wave A and initiating a broader long-term correction into bearish green wave 2.
After completing orange wave A at $37.37, Cloudflare started a corrective advance that ultimately led to a new all-time high at $260, completing orange wave B. Following the termination of orange wave B, price action reversed again, losing its corrective (false) bullish momentum and resuming the broader corrective phase.
Looking ahead, we expect the market to continue falling lower and develop bearish orange wave C, which would complete the entire corrective structure of green wave 2. We anticipate orange wave C to unfold as a three-wave structure, labeled within the red cycle.
For the completion of the overall correction and green wave 2, we have defined a Fibonacci retracement zone in which we expect selling pressure to exhaust and strong bullish momentum to return. From this area, the market should be positioned to initiate bullish green wave 3, targeting new all-time highs over the coming months or years.
The Fibonacci retracement zone is defined as follows:
- 61.8% retracement: $93.61
- 78.6% retracement: $58.81
- 88.7% retracement: $37.88
From our perspective, these levels represent prime buying and accumulation opportunities, offering exceptionally attractive valuations ahead of the next long-term bullish cycle. We are preparing to use this zone to strategically increase portfolio exposure.
Should Cloudflare reach this Fibonacci retracement zone, or if any meaningful structural changes occur, we will provide updates immediately.
Kind regards,
Monalytics
DISCLAIMER: The content on this website, including charts, analyses, and recommendations, is for informational purposes only and does not constitute financial, investment, or professional advice. Trading and investing involve risk. You should consult a qualified financial advisor before making any investment decisions.
