Netflix: Attempting to Break the Short-Term Downtrend

Netflix is preparing to release its financial results for the second quarter of 2026. According to the company's official press release published on 15 June, the earnings report will be released on 16 July, followed by a video interview with management for investors. Back in April, when reporting its first-quarter results, the company warned that content spending would likely peak during the second quarter before moderating in the second half of the year. Investors are now looking to the July earnings release as the first opportunity to assess that forecast, as well as the pace of subscriber and advertising revenue growth.

Technical Analysis

On the four-hour chart, Netflix (NFLX on FXOpen) has been trading within a short-term downtrend since April. The decline accelerated in June, reaching a volume climax on 22 June before the price rebounded from the $71.00 area a few days later. The recovery established a local low, marked on the chart by the green support line.

At the beginning of July, the price attempted to break above the descending trendline, but the bullish breakout candle was completely engulfed by the following bearish candles. As a result of the failed breakout, a local swing high was formed, defining the red resistance level at $78.50, before the price retreated to the upper boundary of the current market profile at $76.10.

The Point of Control (POC) near $72.70 is the nearest significant support level should the pullback continue. Just below it lie the lower boundary of the market profile at $71.65 and the green support zone, which could once again attract buying interest if tested.

The RSI + MAs indicator is currently reading 48, 47 and 40. All three lines remain without a clear directional bias, highlighting the current market indecision.

Key Takeaways

The rebound from the $71.00 area has encountered resistance around $78.50, and without support from fundamental catalysts, it is still too early to conclude that the short-term downtrend has ended. Netflix's second-quarter earnings release on 16 July could become the key catalyst for the stock's next significant move.

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