Netflix share price was up in Thursday’s pre-market session, looking to build on its recovery in the last three days. Netflix (NASDAQ: NFLX) rose by 1 percent in the early session, with the share price rising to $ 616.50 as of this writing. The stock ended each of the last three weeks in the red, with the downward momentum exacerbated by this week’s FUD-driven selloff. Furthermore, as Disney’s earnings released on Tuesday showed that streaming services still have a considerable headroom for growth, which spells good news for Netflix.
Meanwhile, the streaming giant could be getting ready to adjust upwards its subscription fees following its foray into live sports and a line of popular series scheduled to return with new seasons. Furthermore, that could provide an opportunity for the company to grow its subscriber numbers. Also, Netflix’s focus on ad-generated revenue presents an attractive proposition for investors. This could see an inflow of new capital to leverage the current stock price dip.
The 2-hour chart shows that the momentum on Netflix share price will likely continue stay on the upward trajectory. First, the price is above the middle Bollinger Band, and is attempting to cross above the upper band, whose level currently aligns with $626.18 mark. Also, the Moving Average Convergence Divergence (MACD) is above the signal line, affirming control by the buyers.
Netflix stock price will likely stay on the ascending trajectory above the 617.00 pivot mark. With that momentum, the next barrier will likely come at 626.80, but extended control by the buyers will break above that mark and potentially send NFLX to test 635.00. On the other hand, the sellers will likely take control if the price moves below 617.00. In that case, look for the first support at 608.50. Furthermore, if the sellers extend their control at that point, they will break below that level, invalidate the upside narrative and potentially move the share price to test 600.00.
This post was last modified on Aug 09, 2024, 08:14 BST 08:14