Netflix stock price has seen a surge after the company beat Wall Street expectations. The company reported that subscribers have grown by 8.8 Million and also came out with new plans.
Netflix may have solved its password sharing issue, limiting the use of the account to only one user. The company also came up with a new subscription plan in which users can watch advertisements and pay less while watching shows and movies.
The company reported a third-quarter revenue of $48.542 Billion which shows a year-on-year growth of 7.8% while the net income rose by $1.677 Billion from $1.398 Billion.
Netflix has shown a strong chart structure in recent trading sessions. The price was above the key moving averages. The sellers were wary of the competition and waited for a decline to show their influence. But seeing the rise, they were closing their positions, staying on the sidelines. The buyers kept making long positions and steadily moved above $400.
NFLX stock was trading at $401.77 at the time of writing with a remarkable gain of 16.05% for the day, showing extreme bullishness in the last trading session. The trading volume for the day was 28.074 Million. The market cap of NFLX stock was $178.043 Billion. The stock displayed the bulls’ strength and maintained the gains leading the way.
As per the stock technicals, analysts maintained a buy rating, and the target price of $600 showing the stock’s bullishness.
Technical Analysis of Netflix Stock Price in 1-D Time Frame
Currently, Netflix stock (NYSE: NFLX) is trading above the 50 and 200-day exponential moving averages (EMAs), which are supporting the price momentum.
However, if buying volume adds up, then the price might support bullish momentum by making higher highs and new highs. Hence, Netflix price is expected to move upward giving bullish views over the daily time frame chart.
The current value of RSI is 58.31 points. The 14 SMA is below the median line at 34.95 points which indicates that Netflix stock is bullish.
The MACD line at -9.93 and the signal line at -12.01 are below the zero line. The bullish crossover in the MACD signals strength in the momentum of the NFLX stock price.
Summary
Netflix stock (NYSE: NFLX) is showing bullishness on the daily time frame. The company also gave a good quarterly result and has announced new plans. Price action suggests that the investors and traders are bullish on the 1-day time frame. The price action reflects a bullish perspective. However, investors and traders should wait for proper setup for the next move and avoid FOMO.
Technical Levels
Support Levels: $315.52 and $287.60
Resistance Levels: $454.38 and $483.72
Disclaimer
The analysis provided in this article is for informational and educational purposes only. Do not rely on this information as financial, investment, or trading advice. Investing and trading in stock involves risk. Please assess your situation and risk tolerance before making any investment decisions.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/20/netflix-stock-surge-16-will-nflx-stock-sustain-above-key-emas/