Netflix Is Enjoying An Upward Trajectory — But This Chart Shows Bearish Bias Ahead Of Q1 Earnings

Zinger Key Points
  • Technical Assessment indicates a cautious sentiment among analysts regarding Netflix's stock performance.
  • Recent analyst ratings from Benchmark, BMO Capital, and Macquarie, averaging a price target of $612.67, imply a slight -0.80% downside.

Wall Street expects Netflix Inc NFLX to report $4.52 in EPS and $9.28 billion in revenues when first-quarter (Q1) earnings are released after market close.

Year-to-date, the streamer’s stock is up about 27%. For the past year, it’s up 84.45%. But as Netflix heads towards reporting Q1 earnings, the technical analysis of the company’s stock points toward mixed sentiments with a slight bearish bias.

See below.

Netflix Stock Technical Setup Ahead Of Q1 Earnings

Chart: Benzinga Pro

Read: ‘Enormous 8’ Member Netflix Just Made New 52-Week High, Valuations Suggest Profit-Taking Opportunity

The eight-day simple moving average (SMA) indicates bulls taking charge. Values recently crossed over the current share price.

Similarly, the 20-day SMA now also lies above the share price, reinforcing positive trading sentiments.

The 50-day SMA suggests a bullish signal, adding to the bullish indication from the eight and 20-day SMAs.

The 200-day SMA signals a bullish sentiment, as its values lie significantly lower than the current stock price.

Oscillators Indicate A Bearish Bias

Chart: Benzinga Pro

Also Read: Netflix Stock Is In The Spotlight Thursday: What’s Going On?

Moving Average Convergence Divergence (MACD) indicator favors a bullish position, reflecting a positive value of 3.73. It has, however, been treading lower, so investors may want to keep a watch on that.

Additionally, the Relative Strength Index (RSI) at 5.93, can be seen heading towards the oversold regime, which could provide support for a bullish stance.

The Bollinger Bands analysis, however, fails to reinforce the emerging bullish signal. Note its recent movement from the upper (bullish) band to the lower (bearish) band.

Overall, some short-term and long-term indicators suggest positive momentum pressure. But most oscillators (RSI, MACD) provide support for a potential bullish leg ahead for Netflix stock.

Ratings & Consensus Estimates: The consensus analyst rating on Netflix stock stands at a Buy currently with a price target of $546.97.

Benchmark, BMO Capital, and Macquarie analysts issued their most recent assessments over the past three to four days.

Their collective evaluation yields an average price target of $612.67 for Netflix stock, and a potential downside of approximately -0.80%.

NFLX Price Action: Netflix stock was trading at $617.15 at the time of publication.

Read Next: Netflix Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

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