- Netflix stock price is struggling between 100-day and 200-day EMA currently.
- In the month of September, Netflix Inc. stock price declined by 16.37%.
- RSI is at 33.67 which suggests that the price is near the oversold zone.
Netflix Inc. (NASDAQ: NFLX) is an American subscription video-on-demand over-the-top streaming service owned and operated by Netflix Inc. It primarily distributes original and acquired films and television shows from various genres and is available internationally in multiple languages.
Based on recent data, Q2’ 2023 was announced on July 19, 2023. The estimated EPA was $2.854 and the reported EPS was $3.29, which was positively surprised by $0.436 (15.26%). The estimated revenue was $8.287 Billion, but the reported revenue was $8.187 Billion, which was negatively surprised by $99.856 Million (1.20%), which resulted in a price fall of 8.76% in a single trading session.
Last year, the NFLX stock price surged by 59.67%. The P/E ratio is 40.23, and Netflix’s debt-to-equity ratio is 0.6337 for June 30, 2023. In the last 52 weeks, the NFLX stock price ranged between $211.73 and $485.
Turning to the technical indicators, the price has been taking support on the 200-day EMA for the last two weeks. According to RSI, SMA 14 is at 32.47 and recovering from the oversold zone. MACD suggests that 9 EMA is negative and volumes are also negative; MACD is in favor of bearish momentum.
Will the NFLX Stock Price Regain the $500 Hurdle?
NFLX stock price is trading at $377.80 with a gain of 0.25% in a single trading session. The market capitalization is $166.96 Billion and the public float is 436.66 Million. The average volume is 5.98 Million and the beta value is 1.11.
Currently, the NFLX stock price is trading in a parallel range and staying on the 200-day EMA and support level. The price has spent some time here and made a base and the next breakout may be genuine and trustworthy.
If the Netflix stock price forms any bullish candlestick pattern and the price holds over $400 territory, then investors may show some faith which may result in a bullish trend. If buyers become strong, then in a few trading sessions the price may surge to $500.
On the other hand, if the NFLX stock price fails to sustain over the 200-day EMA and the price drops, the price sustains below the 200-day EMA. The price may decline further but if sellers hold their grip, one can see a bearish trend.
Option Chain Analysis
According to the option chain data, the strike price of $370 can work as a support because of a higher number of open contracts, and the strike price of $385 can act as a resistance because 2988 open contracts are here.
On the current strike price of $375, there are 906 open contracts on the CALL side but 3387 open contracts on the PUT side. This data indicates that the price buyers are dominating and Netflix stock price can gain some bullish momentum in the next few sessions.
Conclusion
The NFLX stock price was riding through a bullish trendline and gave a breakout. If the sellers become active and hold the grip, the price may decline further and one can see a bearish trend. So, one should avoid buying in this scenario. But if the price gives a fake breakdown and again enters the $400 hurdle, then NFLX stock price may again follow the bullish trend.
Technical Levels
Resistance levels: $450 and $560
Support levels: $375 and $330
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading stock assets comes with a risk of financial loss.
