Main to remember
- Netflix’s actions jumped in an prolonged exchange Thursday after the streaming giant published profits from the first quarter which exceeded the expectations of Wall Street, stimulated by higher subscription prices and advertising revenues.
- The recent rebound in action has coincided with the index of relative force increased by the threshold of 50, a reading which has marked the bottom of several previous withdrawals since the beginning of 2023.
- Investors should monitor the main surroundings of the Netflix graph around $ 1,065 and $ 1,300, while monitoring important support levels close to $ 821 and $ 697.
The actions of Netflix (NFLX) jumped Thursday in prolonged exchanges after the streaming giant published profits from the first quarter which exceeded the expectations of Wall Street, increased by higher subscription prices and advertising revenues.
Until Thursday’s fence, Netflix shares have won 9% since the start of the year and are negotiated almost 60% more in the last 12 months while the company continues to develop its advertising and live events.
Analysts also praised Netflix’s ability to resist an economic slowdown in the middle of the uncertainty linked to prices, JPMorgan describing it as the “most resilient” company it follows. Netflix also drew attention to his attempt to double his income and reach a market capitalization of 1 Billion by 2030, that the Wall Street Journal reported earlier this week.
Below, we take a closer look at the weekly Netflix graphic and apply a technical analysis to highlight the key price levels that deserve to be watched.
Momentum leading to gains
After establishing their record in February, Netflix’s shares found themselves up to 23% before the bulls intervened to support the stock last week near the 50 -week mobile average.
It should be noted that the rebound has coincided with the relative resistance index (RSI) moving above the threshold 50, a reading that has marked the bottom of several previous declines in the stock since the beginning of 2023.
More recently, the actions continued to gain momentum leading to the quarterly results of the streamer, the price that would open around the psychological level of $ 1,000 on Monday morning. (US markets are closed on Friday on Good Friday commemoration.)
Identify two key air areas on the Netflix graph that investors can also watch and emphasize the important levels of support to monitor during retractions.
The main axes of the head that are worth watching
Netflix shares increased by 3.5% to around $ 1,007 in trade after working hours on Thursday.
The first aerial area to keep an eye is $ 1,065. Investors who bought shares during the decline could decide to place sales orders near the upper level of the action (ATH).
We can project an upward target to monitor above ATH using the analysis of bar models, a technique that analyzes previous trends to predict future directional movements.
When applying the tool to the Netflix graph, we take price bars including the upward action trend from August to December from last year and superimpose them from the bottom of this month. The analysis provides for an objective of around $ 1,300, or about 34% above Thursday’s fence price.
The previous trend took place more than 17 weeks before the consolidation of shares, indicating a decision of similar trend can last until the beginning of August if the action of prices rhymes.
Important support levels to monitor
During retractions, investors should follow the level of $ 821. A new test of this area could see investors looking for entry points near last week, which is also aligning closely at the end of a five -week defeat sequence in early January.
Finally, the sale below this level opens the land for a possible drop to around $ 697. Netflix’s actions could encounter support in this region near the first swing in July from last year and a period of side drift on the table between mid-August and at the end of September.
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