The Netflix Inc (NASDAQ: NFLX) stock has been trading sideways since the 26th of January, with the 496.00 and 557.00 barriers containing most of the price action. Tomorrow, the firm announces its earnings and the big question is whether it maintain its subscriber growth amid increasing competition from new streaming services. For now, taking the technical picture into account, we will stay neutral.
If the results tomorrow come in on the bright side, the stock could emerge above the upper bound of the range, at 557.00, and initially target the high of February 10th, at 567.00. If that barrier is not able to halt the uprise, then we could see extensions towards the all-time high, hit on January 20th, at around 593.00.
Shifting attention to our short-term oscillators, we see that both the RSI and the MACD lie very close to their equilibrium levels, suggesting a lack of directional momentum and confirming our choice to stay sidelined for now, especially ahead of tomorrow’s earnings results.
On the downside, a break below 539.00 may signal that investors want the stock range-bound for a while more. They could then allow declines towards the 518.00 area, marked by the inside swing high of March 29th, the break of which could aim for the lower end of the aforementioned range, at around 496.00.
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