Watch These Netflix Stock Price Levels After Streamer Issues Soft Outlook

Netflix (NFLX) shares traded somewhat little successful extended trading Thursday aft nan streaming giant’s soft outlook overshadowed second-quarter results that came successful up of Wall Street expectations.

Below, we return a person look astatine nan Netflix floor plan and usage technical analysis to constituent retired cardinal post-earnings levels to watch retired for.

Chart Signals Tiring Uptrend

Netflix shares person tracked steadily higher since mid-2022, pinch nan inclination gathering spot aft nan 50-day moving mean (MA) crossed supra nan 200-day MA 4 months later to shape a bullish golden cross pattern.

Despite nan streaming giant’s semipermanent uptrend, caller technicals connected nan floor plan bespeak weakening buying appetite.

Firstly, 2 chopped peaks person formed passim June and July, perchance carving retired a double top, a floor plan shape that signals a reversal aft a information reaches a precocious value 2 consecutive times. 

Secondly, arsenic nan stock value made its 2nd high, nan relative spot scale (RSI) made a shallower precocious to create a bearish divergence, suggesting waning momentum.

Finally, nan banal collapsed down beneath nan intimately watched 50-day MA connected Thursday starring into nan company’s net report, a motion that investors could beryllium positioning for a “sell nan news” event.

Monitor These Key Retracement Levels

If Netflix shares acquisition a post-earnings decline, investors should show 5 cardinal areas connected nan floor plan that whitethorn pull buying interest.

The first level to watch sits little than 1% beneath Thursday’s adjacent astatine $638, a location that whitethorn garner support adjacent a bid of value actions complete nan past 5 months.

A adjacent beneath this region could spot nan shares autumn to astir $550, wherever they whitethorn find buyers adjacent nan rising 200-day MA and an established uptrend statement that extends backmost to July 2022.

The adjacent little area to watch is situated astatine $500, wherever a play of consolidation anterior to nan January stock gap could supply support.

A further diminution whitethorn spot nan shares revisit nan $440 region, an area connected that floor plan wherever buyers could activity an entry point adjacent respective anterior highs successful nan banal betwixt June and September past year.

The last area to show sits astir $365, wherever nan streaming giant’s banal would apt pull buying liking adjacent nan 2023 February swing high and October plaything low.

Netflix shares fell 0.2% to $641.89 successful after-hours trading.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.