Technical Analysis – Netflix stock moves within narrow range ahead of earnings
April 18, 2024 2:27 pm
Netflix stock continues to consolidate as Q1 earnings awaited
Strong support seen at 50-day SMA
Netflix stock has been consolidating for much of April after prices reached a more than two-year high of 636.82 at the start of the month. The downward drift has pushed the stock below its 20-day simple moving average (SMA), but there seems to be sufficient support coming from the 50-day SMA.
Whether or not the price will pierce below it or attempt to re-challenge the April top will depend on the outcome of its Q1 earnings result due after the US market close on Thursday. For now,there is a clear loss of momentum in the near-term picture, with both the stochastics and RSI plotting lower lows.
In the event that the price drops below the 50-day SMA, currently at 602.15, there’s likely to be an acceleration in the selloff, pushing the stock lower towards the 23.6% Fibonacci retracement of the October 2023-April 2024 uptrend at 567.77. Breaching this too would turn attention to the 525.05 level, which is the 38.2% Fibonacci, before the 50% Fibonacci comes into range at 490.53.
However, if the 50-day SMA manages to fend off the bears and the stock bounces higher, the first battle would take place around 636.82 before the 675.00 area is attacked. The latter was a strong resistance region back in 2021. Successfully overcoming it would take the stock a step closer to its all-time high of 698.66.
All in all, Netflix’s longer-term uptrend looks safe for the time being, although it is paramount that the 50-day SMA isn’t breached. At the same time, the sooner the price can reclaim the 20-day SMA the stronger the chances of climbing to fresh highs.
Netflix stock continues to consolidate as Q1 earnings awaited
Strong support seen at 50-day SMA
Netflix stock has been consolidating for much of April after prices reached a more than two-year high of 636.82 at the start of the month. The downward drift has pushed the stock below its 20-day simple moving average (SMA), but there seems to be sufficient support coming from the 50-day SMA.
Whether or not the price will pierce below it or attempt to re-challenge the April top will depend on the outcome of its Q1 earnings result due after the US market close on Thursday. For now, there is a clear loss of momentum in the near-term picture, with both the stochastics and RSI plotting lower lows.
In the event that the price drops below the 50-day SMA, currently at 602.15, there’s likely to be an acceleration in the selloff, pushing the stock lower towards the 23.6% Fibonacci retracement of the October 2023-April 2024 uptrend at 567.77. Breaching this too would turn attention to the 525.05 level, which is the 38.2% Fibonacci, before the 50% Fibonacci comes into range at 490.53.
However, if the 50-day SMA manages to fend off the bears and the stock bounces higher, the first battle would take place around 636.82 before the 675.00 area is attacked. The latter was a strong resistance region back in 2021. Successfully overcoming it would take the stock a step closer to its all-time high of 698.66.
All in all, Netflix’s longer-term uptrend looks safe for the time being, although it is paramount that the 50-day SMA isn’t breached. At the same time, the sooner the price can reclaim the 20-day SMA the stronger the chances of climbing to fresh highs.
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