Double Negative Divergence for Netflix Ahead of Earnings
Netflix (ticker NFLX) is scheduled to report quarterly earnings following the US market close today. The EPS estimate is down from $3.49 to $2.20. According to the company, new subscribers are anticipated to have increased by around 8.5 million, similar to the previous quarter.
Most will be already aware that the streaming video giant also recently implemented a global crackdown on password sharing, which affected many, to say the least. More recently, Netflix struck a deal with WWE Raw, which will be moving over to Netflix in January 2025 as part of a 10-year TV rights deal. Undoubtedly, this will expand the reach of the WWE and Netflix.
From a technical standpoint ahead of the earnings print, the stock is currently pencilling in a double negative divergence pattern out of the Relative Strength Index (RSI) at resistance on the daily timeframe from $492.85. There is no denying that upside momentum has slowed for the stock since late September, but at the same time, bulls remain at the wheel, recently refreshing multi-year highs. Therefore, at least on the daily scale, we are still in an uptrend and a breakout higher could be on the table.
Should a sharp move emerge to the downside, daily support calls for attention at $445.25, while should the unit breakout to the upside, this may have bulls aim for daily resistance coming in from $511.74.
Most will be already aware that the streaming video giant also recently implemented a global crackdown on password sharing, which affected many, to say the least. More recently, Netflix struck a deal with WWE Raw, which will be moving over to Netflix in January 2025 as part of a 10-year TV rights deal. Undoubtedly, this will expand the reach of the WWE and Netflix.
From a technical standpoint ahead of the earnings print, the stock is currently pencilling in a double negative divergence pattern out of the Relative Strength Index (RSI) at resistance on the daily timeframe from $492.85. There is no denying that upside momentum has slowed for the stock since late September, but at the same time, bulls remain at the wheel, recently refreshing multi-year highs. Therefore, at least on the daily scale, we are still in an uptrend and a breakout higher could be on the table.
Should a sharp move emerge to the downside, daily support calls for attention at $445.25, while should the unit breakout to the upside, this may have bulls aim for daily resistance coming in from $511.74.
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