FXOpen
As shown in the daily chart for Netflix (NFLX), during yesterday’s trading session, the price exceeded $725, marking a new all-time high.
The bullish sentiment is driven by the upcoming release of the third-quarter earnings report, scheduled for 17 October. According to Zacks analysts' forecasts: → earnings per share are expected to reach $5.07, up 35.92% compared to the same quarter last year; → gross revenue is forecast to be $9.76 billion, an increase of 14.31% year-on-year.
A technical analysis of Netflix’s (NFLX) daily chart indicates that the price is moving within an upward channel (shown in blue), which has been in play since the start of 2024. Specifically:
→ the price made a convincing recovery after the stock market’s panic-driven decline on 5 August;
→ the median line acted as support (indicated by an arrow);
→ since mid-September, the price has remained in the upper quarter of the blue channel;
→ while the psychological level of $700 showed resistance in late August, the NFLX price is now firmly holding above it.
These observations suggest strong buying pressure for NFLX shares. However, the current situation could be disrupted by the earnings release. What if the actual figures fall short of market expectations? In that case, a significant correction is possible – perhaps down to the channel's median line.
In the meantime, analysts maintain a cautiously optimistic outlook. According to TipRanks, out of 37 ratings, 25 analysts recommend buying NFLX shares, while 2 suggest selling. The average price target for NFLX is $720 over the next 12 months.
Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.
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.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
BTC/USD Fails to Surpass $100,000: Bitcoin Price Forecasts for 2025
Forbes analysts predict 2025 will be a pivotal year for Bitcoin, solidifying its position as a global financial asset. Their key forecasts include:
→ Regulatory Shifts: A change in SEC policies is expected to foster growth in the cryptocurrency sector, driving
The Magnificent Seven Stocks: A Stellar 2024 and an Uncertain 2025
The Magnificent Seven is a term used to describe the seven largest technology companies that dominate the global economy through their scale, innovation, and high market capitalisation.
These companies are often key drivers of the US stock market, and in
What Is the January Effect on Stock Markets and What Traders Do?
The January effect has long fascinated traders, highlighting a seasonal pattern where stock prices, especially smaller ones, tend to rise at the start of the year. But what drives this phenomenon, and how do traders respond? This article dives into