Market Analysis

Earning season at Netflix. Is the stock feeling the pressure from Apple and Disney?

Since our last look at Netflix’s stock on April 1st (Apple has entered the field. How will this impact Netflix?), the market tested the structural level at US$372 but bounced off with much momentum and found support at US$344.70 on yesterday’s trading day.

The markets are a little tense at the moment. The earning season has opened, and expectations have become more cautious – or even more cautious. For the first time since 2016, some companies are expected to see declining profits.

Nevertheless, the US market is well positioned. It has already risen by almost 14 percent this year, one of the best annual starts for nearly 20 years. The question is whether this could lead to a potential setback or whether the market will continue in a moderate run.

Netflix earning day is today, 16 April 2019. How will this affect the share? Is the stock feeling pressure from Apple and Disney?

The structural level at US$344.70 could be decisive for the next development. If the market manages to defend this level, a movement could turn into a sideways move. The upper limit could be in the US$371 area. If the market breaks up here, it could reach US$386.85 and US$400 regions.

However, if the bulls are too weak and the bears are starting to take control, there could be support around US$323 and US$305.

The two smoothing lines of the mid 38 and 50 glide averages are approaching each other.

In the MACD Oscillator, the MACD line is below its trigger line, and the histogram is in negative territory.

Investors should expect increased volatility at earning season.


DAI.DE Daily chart Source ActivTrader

DAI.DE Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst

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