Yesterday, the NFLX share price dropped below USD 370, the lowest since late May of this year, and about -22% from the July peak.
Note that on July 6, we wrote that the NFLX stock price could meet resistance at USD 450 per share, and the signals from the chart gave bearish warnings. Just since July, the stock price began to perform worse than the broad S&P 500 market index.
Perhaps the company knows better about the reasons for the emerging negative dynamics and is making changes in management. This week it became known about the appointment of Amy Reinhard to the post of president of the company's advertising business. New product directors and technical directors were also appointed.
Will new executives help the stock return to its upward trajectory?
→ a long upper shadow on the October 3 candle may indicate the strength of sellers in the stock market;
→ Thursday’s bearish candle may become an element of a breakout of the long-term channel (shown in blue);
→ pressure on the price of NFLX shares may be exerted by a negative trend in the stock market due to the tough policy of the Federal Reserve.
→ a breakdown of the lower border of the ascending channel may turn out to be false;
→ support may come from the level of USD 370, which previously had an impact on the price.
The approaching earnings season may have a strong impact on the price. Already on October 18, we will learn the results of NFLX for the past quarter.
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