top of page

Maximizing Profits: Top Tips for Trading Netflix Before Earnings Report Release

Stock: Netflix, Inc. (NASDAQ:NFLX)


Netflix, the trailblazer of streaming content, is poised to report its earnings after the market closes today.


The company's financial health, marked by subscriber growth and revenue, will be scrutinised by investors worldwide.


Netflix's strategic maneuvers, such as its crackdown on password-sharing and the introduction of paid sharing in key markets, have set the stage for what could be a transformative earnings report.


Trading Tip:
Before Netflix's earnings release, consider the market sentiment and technical indicators, but trade cautiously. Position yourself by setting a clear entry point near the pivot, with a tight stop loss to minimize potential losses. It's advisable to keep trades smaller than usual to manage risk ahead of the earnings announcement, as volatility is expected to increase. Remember, trading around earnings is speculative; it's crucial to protect your capital first and foremost.

Intraday Stock Signal - January 23, 2024


Stock: Netflix, Inc. (NASDAQ:NFLX)


Pivot Point: $485


Trade Direction: BULLISH


Trade Probability: 65%


A trading chart displaying the asset with two main indicators. The top panel shows Bollinger Bands overlaid on candlestick price action with a 20-day Simple Moving Average (SMA). Below, two sub-panels present the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), respectively. The RSI is within the neutral range, neither overbought nor oversold. The MACD shows the signal line and the MACD line close together, indicating no strong momentum in either direction. The lower section of the image features a separate price action chart without indicators for comparison.

Fundamental Overview:

Netflix's earnings are a pivotal event, reflecting not only its performance but also its strategic directions and market position. Here’s a breakdown of the key fundamental aspects to watch:

  • Revenue: Expected to show robust growth, revenue numbers will indicate the success of Netflix's recent pricing and service strategies.

  • Earnings Per Share (EPS): Forecasts suggest a significant year-over-year increase, with EPS serving as a direct indicator of profitability and financial health.

  • Subscriber Growth: A critical metric, as the streaming market becomes more saturated. Any surprises in subscriber numbers could sway the stock considerably.

  • Management Guidance: Forward-looking statements will shape expectations for 2024 and beyond, impacting investor sentiment.

A trading chart displaying the asset with two main indicators. The top panel shows Bollinger Bands overlaid on candlestick price action with a 20-day Simple Moving Average (SMA). Below, two sub-panels present the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), respectively. The RSI is within the neutral range, neither overbought nor oversold. The MACD shows the signal line and the MACD line close together, indicating no strong momentum in either direction. The lower section of the image features a separate price action chart without indicators for comparison.

Yesterday's Trend: The chart reflected a steady uptrend, with Netflix's stock resiliently pushing against higher resistance levels, suggesting a market consensus leaning towards a positive earnings report.

Market Trend Analysis:


  • Volatility: Noticeably increased as the earnings report nears, indicating investor anticipation and the potential for significant stock price movements.

  • Moving Average (MA): NFLX is consistently trading above its MA, signifying sustained bullish sentiment.

  • Ichimoku Cloud: With the stock price comfortably above the cloud, the technical outlook remains positive.

  • RSI: At a neutral 55, the momentum indicator leaves room for potential upside, suggesting that the stock is not yet overbought.

  • Bollinger Bands: Approaching the upper band may signal resistance; however, a positive earnings report could push the stock through to new highs.

  • MACD: A bullish crossover supports the positive trend.

  • Volume: Increased volume indicates strong interest, which could lead to a decisive move post-earnings.

🎯 Profit Targets:

  • Buy:

  • 1st Target (1st Resistance): $495

  • 2nd Target (2nd Resistance): $505

  • 3rd Target (3rd Resistance): $515


❌ Stop Loss Guidelines:

  • Buy: Set the stop loss at $475, respecting the recent support level and allowing for earnings-related volatility.


Netflix Suggestion:

With the fundamental and technical factors aligning, a bullish stance could be considered. A long (buy) position might be favorable, aiming for the first resistance target, with a stop loss set to manage risk.


Traders should closely monitor the earnings release, as the actual figures and forward guidance could prompt rapid market revaluation. As always, due to the inherent risk of trading around earnings announcements, it is vital to employ prudent risk management strategies.

Comentarios


Los comentarios se han desactivado.
bottom of page