Netflix (NFLX) shares moved larger to start out the week because the streaming large will get set to report earnings after Thursday’s shut.

Regardless of issues {that a} tariff-induced recession may gradual promoting spending and see customers reign in discretionary purchases on providers like streaming subscriptions, Wall Road has a median «buy» rating on the inventory. Analysts at JPMorgan not too long ago identified that the corporate sits positioned to climate an unsure macro environment given its strong subscriber base.

As the corporate strikes previous reporting subscriber numbers, traders will seemingly be waiting for subscription worth hikes to assist offset the upper manufacturing price of the streamer’s broadening content material slate into areas comparable to live sports and occasion programming. Netflix shares had been up 3% at round $946 in current buying and selling, pushing the inventory’s year-to-date acquire to about 6%.

Beneath, we take a more in-depth have a look at Netflix’s chart and apply technical analysis to determine important worth ranges price watching out for forward of the streaming large’s quarterly outcomes.

Descending Channel Takes Form

Since minting their record high in mid-February, Netflix shares have trended decrease inside a descending channel.

Extra not too long ago, the inventory discovered shopping for curiosity close to the sample’s decrease trendline final week, probably setting the stage for a post-earnings continuation rally.

In the meantime, final week’s bounce coincided with a robust uptick within the relative strength index (RSI) to point accelerating momentum earlier than the indicator dipped barely on Thursday and Friday as the value consolidated after Wednesday’s rally.

Let’s determine important support and resistance ranges on Netflix’s chart that traders could also be monitoring amid the opportunity of additional worth swings this week.

Important Assist Ranges to Monitor

Promoting from present ranges may see a retest of final week’s intraday low round $821. This space on the chart may additionally present assist close to the descending channel’s decrease trendline and the inventory’s January trough.

A breakdown right here may set off a fall to the following stage of significant assist at $765. Buyers might look to accumulate shares on this area close to the higher stage of a consolidation interval that fashioned on the chart following final October’s breakaway gap.

Essential Resistance Ranges to Watch

Additional shopping for this week may gasoline a rally to the $1,000 stage. This space would seemingly entice important consideration close to the psychological round number and a variety of corresponding buying and selling exercise on the chart stretching again to mid-October.

Lastly, a extra bullish transfer in Netflix shares may see the value climb to $1065, a location on the chart the place traders might search profit-taking alternatives close to the inventory’s document excessive. 

This space additionally sits in the identical neighborhood as a projected bars sample goal that takes the trend larger that instantly preceded the descending channel and repositions it from final week’s low, with the evaluation speculating how a possible continuation transfer within the inventory might play out.

The feedback, opinions, and analyses expressed on Investopedia are for informational functions solely. Learn our warranty and liability disclaimer for more information.

As of the date this text was written, the creator doesn’t personal any of the above securities.