The Netflix (NFLX) Share Price Has Reached an All-Time High
As shown in the daily chart for Netflix (NFLX), during yesterdays trading session, the price exceeded $725, marking a new all-time high.
The bullish sentiment is driven by the upcoming release of the third-quarter earnings report, scheduled for 17 October. According to Zacks analysts' forecasts: earnings per share are expected to reach $5.07, up 35.92% compared to the same quarter last year; gross revenue is forecast to be $9.76 billion, an increase of 14.31% year-on-year.
A technical analysis of Netflixs (NFLX) daily chart indicates that the price is moving within an upward channel (shown in blue), which has been in play since the start of 2024. Specifically:
the price made a convincing recovery after the stock markets panic-driven decline on 5 August;
the median line acted as support (indicated by an arrow);
since mid-September, the price has remained in the upper quarter of the blue channel;
while the psychological level of $700 showed resistance in late August, the NFLX price is now firmly holding above it.
These observations suggest strong buying pressure for NFLX shares. However, the current situation could be disrupted by the earnings release. What if the actual figures fall short of market expectations? In that case, a significant correction is possible perhaps down to the channel's median line.
In the meantime, analysts maintain a cautiously optimistic outlook. According to TipRanks, out of 37 ratings, 25 analysts recommend buying NFLX shares, while 2 suggest selling. The average price target for NFLX is $720 over the next 12 months.
Read more: https://fxopen.com/blog/en/oa-the-netflix-nflx-share-price-has-reached-an-all-time-high/
Text source: Forex Trading Blog
