Netflix saw its stock trending up to a 5-month high of 352.97 in January after bottoming out at 252.13 in late-September.
From a technical perspective, the upward direction could strengthen as the 20- and the 200-day simple moving averages (SMAs) have recently registered a bullish cross. Meanwhile, in the short-term, the market’s momentum could remain muted as the RSI keeps flattening above its 50 neutral level and the MACD seems to be softening slightly below its red signal line.
A downside reversal could initially stall near 334.83, where the 61.8% Fibonacci retracement of the 385.73-252.13 down-leg and the 20-day SMA are placed around. Slightly lower, the area between the 200-day SMA and the 50% Fibonacci of 319.11 could next come under the radar, though a forceful break below the ascending trendline drawn from the 252.13 level could prove more harmful for the market’s upward pattern in the medium-term picture. In this case, traders could next look for support near the 38.2% Fibonacci of 303.38.
Alternatively, if the price manages to clear its recent peak of 342.97, the way could open towards the 360.00 level that acted both as support and resistance in the first half of 2019. Should that fail to hold, the bullish action could next take a break near 375.00 before a bigger battle starts around 385.73.
In short, Netflix stock is likely to stay muted in the short-term, though it remains to be seen whether the price can stretch its uptrend in the medium-term as the simple moving averages suggest at the moment.
Note that the streaming-service company will release its earnings results for the fourth quarter on Tuesday after the closing bell.
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