Netflix (NFLX) shares soared in prolonged buying and selling Tuesday after the streaming big posted better-than-expected fourth-quarter outcomes and lifted its 2025 revenue outlook.

Buyers additionally cheered the streamer’s determination to boost its subscription costs within the U.S., Canada, Portugal, and Argentina. The corporate added 19 million web new subscribers within the fourth quarter, taking its membership tally to over 300 million.

Via Tuesday’s shut, Netflix shares had gained 80% over the previous 12 months, considerably outpacing the S&P 500’s 25% return throughout the identical interval. The inventory jumped 14% to just about $995 in after-hours buying and selling.

Beneath, we take a more in-depth take a look at Netflix’s chart and use technical analysis to level out key post-earnings value ranges value watching.

Inventory Bottoms at 50-Day Shifting Common

After setting a report excessive in early December, Netflix shares retraced as a lot as 13% earlier than bulls stepped in just under the 50-day moving average. 

Whereas the inventory failed to shut above the favored indicator forward of the quarterly outcomes, trading volumes registered their highest degree since mid-October, suggesting that some bigger market members had positioned for post-earnings volatility.

Let’s flip to Netflix’s chart to forecast how a brand new uptrend within the inventory could play out and in addition establish two main support levels value watching throughout pullbacks.

Bars Sample Evaluation

Buyers can speculate how a brand new uptrend could take form by making use of bars sample evaluation, a method that research prior tendencies to foretell future value strikes.

When making use of the device to Netflix’s chart, we take the worth bars comprising the inventory’s trending transfer from August to December final 12 months and overlay them from this month’s low. 

This evaluation forecasts a possible upside goal of round $1,285 and signifies {that a} new development could play out till late Might if price action rhymes with final 12 months’s transfer larger. We chosen the prior development because it instantly adopted a correction of over 10%, setting the stage for comparable transfer to reoccur after the inventory’s latest drop.

Main Help Ranges to Watch

Throughout retracements, traders ought to initially maintain an in depth eye on the $930 degree. This space would seemingly entice sturdy shopping for curiosity close to a variety of slim consolidation that fashioned on the chart just under the inventory’s all-time high (ATH), presumably flipping from a area of resistance to assist.

Lastly, an in depth under this degree opens the door for a extra important decline to round $824. Buyers could look to accumulate shares on this area close to a trendline that connects the minor mid-November pullback low with this month’s trough.

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