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The daily chart for Netflix (NFLX) shows that its price has risen by more than 10% since the start of November, setting a series of new all-time highs. Today, Netflix's stock price is trading above $830.
The bullish momentum is attributed to several factors, including stronger-than-expected Q3 earnings:
→ Earnings per share (EPS): Actual = $5.40, Expectations = $5.11;
→ Revenue: Actual = $9.82 billion, Expectations = $9.11 billion;
→ Monthly active users: Reached 70 million.
Additionally, as reported by Benzinga, investor optimism has been bolstered by expectations that Donald Trump’s pro-business tax-cut policies could increase consumer spending, particularly in discretionary sectors like streaming video.
Technical Analysis of NFLX Stock
The daily chart indicates that Netflix's price has been trading within an upward channel (blue) throughout 2024. However, strong bullish sentiment has pushed the price beyond the channel's upper boundary. This allows analysts to:
→ Construct a parallel channel of the same width above the initial one;
→ Build a steeper channel (black lines).
The price is now in a resistance zone (marked with a red circle), formed by:
→ The upper boundary of the new channel;
→ The upper black trendline.
These observations suggest the possibility of a correction after the explosive rally. The RSI indicator, which has reached its highest levels since January, supports this view. If a correction occurs, the price could test the psychological level of $800.
Analyst Predictions
Analysts continue to raise their price targets for NFLX. According to TipRanks:
→ Out of 36 ratings, 24 analysts recommend buying NFLX shares, while 2 suggest selling;
→ The average 12-month price target for NFLX is now $925, compared to $720 during the previous analysis on 10 October.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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