Current trend

Shares of Netflix Inc., an American entertainment company, as well as a streaming service for films and TV series, are moving in a corrective trend at 487.70.

Yesterday, with the publication of the financial report, the corporation’s management announced that the head of the film department, Scott Stuber, will leave his post in March and head his company, which plans to continue producing projects for Netflix Inc.

The financial report will be published today, and UBS Group AG analysts increased the target price of the issuer’s shares from 500.0 dollars to 560.0 dollars, keeping a Buy rating. According to experts, revenue will increase from preliminary estimates of 8.8B dollars to 9.0B dollars, and operating profit will increase 11.0%, reaching 1.2B dollars compared to 550.0M dollars a year ago.

As for the central outlook, investors expect revenue to adjust from 8.54B dollars to 8.72B dollars and earnings per share (EPS) to adjust from 3.73 dollars to 2.21 dollars.

Support and resistance

On the daily chart, the trading instrument is moving within a narrowing triangle pattern with boundaries of 500.00–475.00, approaching the yearly high of 501.00.

Technical indicators are weakening the buy signal: fast EMAs of the Alligator indicator are just above the signal line, and the AO histogram is forming corrective bars in the buy zone.

Resistance levels: 498.00, 526.00.

Support levels: 473.00, 446.00.

Trading tips

Long positions may be opened after the price rises and consolidates above 498.00 with the target at 526.00. Stop loss – 490.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 473.00 with the target at 446.00. Stop loss is around 480.00.