Netflix (NFLX) – Get report It has been one of the best in the midst of the coronavirus pandemic. With earnings pending after Thursday’s close, investors will find out if the company has been able to maintain momentum.
Consumers flocked to the upper transmission platform during the early stages of the crash. When I say that they congregated, what I really mean is that they came en masse.
Netflix reported 15.77 million new subscribers in the last quarter, beating consensus estimates of approximately 8.5 million. Here are three things to watch out for in the current quarter.
The boost in his business has led to a boost in his share price, with Netflix shares up to 80% since the March low.
Netflix is now FAANG’s best-performing action in the past three months. However, on an annual basis, Amazon.com only beats its 61.7% return. (AMZN) – Get report, another pandemic favorite, which increased 62.8%. The next best performer in the group is Apple. (AAPL) – Get report, up to “only” 33.1% so far this year.
Amazon and Apple are stakes in Jim Cramer’s Action Alerts PLUS Members Club. Do you want to receive alerts before Jim Cramer buys or sells AMZN or AAPL? Learn more now.
Netflix stock trading
Daily chart of Netflix stocks.
Graphic courtesy of Stockcharts.com
Obviously, when the share price rises with a robust result, expectations rise along with it. Now Netflix has the difficult task of meeting those high expectations.
Fortunately, the stock has retreated significantly in the past few days. Shares soared to new highs on Monday but failed to hold those gains after the stock fell and closed lower at 4.2%.
Netflix shares fell fractionally in the coming days, although it continues to maintain the 10-day moving average. While this is a solid price action for short-term bulls, it is less relevant with a binary event like earnings on the table.
The weekly range can help traders a lot in this case. With a low of about $ 490 and a high of about $ 575, we know what levels Netflix must clear to gain momentum in either direction.
If the reaction is bearish, see if Netflix stocks break below the twice range at $ 495 and lose this week’s low at $ 490. Doing so puts the 10-week moving average at stake near $ 467, followed by the 161.8% extension and the 50-day moving average at $ 456 and $ 451, respectively.
If Netflix stocks go up in the results, let’s see if the stocks can eliminate the 261.8% spread to $ 559, followed by this week’s high near $ 575. Above the latter and the range extension of three times. It’s on the table about $ 598.
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