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Netflix Stock Price Signals Downturn As It Loses Key Support

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Aayush Jindal

Key Highlights

  • Netflix’s stock price started a downside correction from the $635 resistance.
  • It traded below a key bullish trend line with support at $610 on the daily chart.
  • Netflix posted $9.4 billion in first-quarter revenues.
  • The price could extend losses if it fails to stay above the $550 support.

Netflix Stock Price Analysis

In the past few weeks, Netflix stock price (NASDAQ: NFLX) saw a major increase. It broke many hurdles to start a strong rally above $500. The bulls even pumped it above $600 before the bears appeared.

Recently, Netflix posted its first-quarter earnings report. The company registered $9.4 billion in first-quarter revenues (well above consensus analyst estimates).

Looking at the daily chart, the price started a downside correction from the $635 resistance. There was a move below the $600 support and a key bullish trend line with support at $610. The bears pushed the price below the 23.6% Fib retracement level of the upward move from the $345 swing low to the $637 high.

If the bulls struggle near $550, Netflix’s stock price might start a substantial downside correction. The first major support sits near the $525 level.

The next key support is at $490 or the 50% Fib retracement level of the upward move from the $345 swing low to the $637 high, below which there could be a steady decline toward the $450 level.

Conversely, the price could start another increase. Immediate resistance could be $580. The next major resistance is $593. A clear move above the trend line, $593, and then $600 could start a strong bullish wave. In the stated case, the price could surge toward the $635 and $650 levels in the coming weeks.

Economic Releases

  • US ADP Employment Change for April 2024 - Forecast 179K, versus 184K previous.
  • US ISM Manufacturing Index for April 2024 – Forecast 50.0, versus 50.3 previous.
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