Technical Analysis – Netflix stock aims to fill gap after Q2 earnings call
Netflix’s stock has been staging a massive recovery after posting a five-year low of 161.40 in May 2022. Moreover, the price jumped to a fresh 1½-year high of 477.65 in the latest daily session just one day ahead of its Q2 earnings announcement, attempting to fill the January 2022 gap.
The short-term oscillators are clearly tilting to the bullish side. Specifically, the RSI has crossed above its 70-overbought mark, while the MACD jumped above its red trigger line for the first time since June 20.
Should the advance resume, the stock could challenge the January 2022 support of 505.00, which is the upper end of the targeted gap. Conquering this barricade, the bulls might aim for the December 2021 support of 582.00 that may serve as resistance in the future. Any further advances might then cease at the 619.00 ceiling.
Alternatively, if the earnings surprise negatively, the stock could reverse back towards the previous resistance of 457.00. Sliding beneath that floor, the price may test the June support of 411.00 before the spotlight turns to the 395.00 hurdle. A break below the latter could trigger a retreat towards 352.00, which has acted both as resistance and support throughout 2023.
Overall, the technical outlook for Netflix’s stock is bullish ahead of the Q2 earnings announcement. Will the fundamentals defend the latest rally?
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