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Netflix Stock Price Forecast: Recovery Path Above $400 Will Be Rocky

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Written By: Eno Ikenna Eteng
Reviewed By: Mohamed Yonis
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    Summary:
  • The Netflix stock price forecast is for the stock to face headwinds as it tries to scale the $400 psychological resistance.

Two days of adverse price action have truncated bullish Netflix stock price forecasts. The Netflix stock price lost 1.8% in Thursday’s trading to extend losses for the second day in a row, following Wednesday’s negative close. The Netflix share price activity has found it hard to scale immediate resistance barriers as a lack of fundamental triggers continues to plague the stock. 

Furthermore, the competition for streaming service market share appears to be getting tougher. Apple TV+, Netflix’s major competitor, has just notched up an award as the first streaming service to deliver the best picture, Oscar. Netflix’s “Power of the Dog” collected several nominations, but it could not beat out Apple TV+’s “CODA” for the Best Picture Academy Award. Apple TV= had purchased “CODA” for $25m when it first aired at the Sundance Film Festival in 2021.

This may not have impacted price action on Netflix directly, but it could have an impact on future Netflix stock price forecasts as it shows the imprint that Apple + is starting to make in the streaming service business. 

Netflix Stock Price Forecast

With Thursday’s price decline, the price activity is now challenging the support level at 374.57. A breakdown of this level brings 366.87 into the mix. Below these levels, the 354.13 price mark may provide additional support to price action. Other support levels at 331.16 and 321.59 also serve as potential downside targets if the price deterioration is extensive.

On the flip side, a bounce on the 374.57 support allows the bulls to aim for the 29 March high at 395.29. However, additional barriers exist at 412.51 and 431.43. These become available if the bulls push the advance towards the 3/9 February highs. The 1 February high completes the short term potential targets to the north at 458.46, but this barrier only becomes a viable target if the 445.06 resistance gives way.

Netflix: Daily Chart

This post was last modified on Apr 01, 2022, 12:41 BST 12:41

Written By: Eno Ikenna Eteng
Reviewed By: Mohamed Yonis

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.

Published by
Written By: Eno Ikenna Eteng
Reviewed By: Mohamed Yonis