In the recent weeks, Netflix’s stock (NFLX) was trading into the convergence of its best respected weekly moving average support lines and best respected weekly moving average resistance lines.
A week ago, perhaps again as a possible hint, NFLX ended the weekly session above its body and wick resistance lines, however, not with great conviction.
Netflix was scheduled to report its 22Q4 on Thursday of last week.
We have seen Netflix doing that before. In our post from July 18th, 2022, a day before its 22Q2 earnings, NFLX broke its best respected daily moving average resistance lines without conviction. The stock price closed that day at $190.92. The earnings reported the next day helped propelling NFLX up by laying the needed resistance break conviction on the table and suggesting confirmation to the stock price reversal.
Last week presented a similar pattern:
This weekly chart shows that NFLX ended the week-ago session above the weekly resistance lines – both body and wick – with a small margin. That does not suggest a compelling conviction.
In contrast, the last weekly session ended with a clearer message, and that followed its earnings report. Again.
The July hint brought the stock price from the $190 area to the $340 area, a 79% move.
Will NFLX repeat this magnitude of a move again?