Current trend

Shares of Netflix Inc., an American entertainment company, as well as a streaming service for movies and TV series, are adjusting at 647.00.

According to a UBS Evidence Lab study, more than 55.0% of the experts surveyed believe that in the coming years, users will reduce TV spending in favor of increasing spending on streaming. In addition, 73.0% of advertisers suggest shifting their budgets in favor of streaming services, and 32.0% indicate a complete rejection of investments in traditional television.

Analysts at BMO Capital Markets believe that Netflix Inc. may raise prices for its non-advertising services. Experts also note the company's attempt to switch to video-on-demand (AVOD) advertising, which may be successful, since this type of ads does not cause rejection from users.

On July 17, Netflix Inc. will publish its financial report for the second quarter: Revenue is expected to reach 9.53 billion dollars, up from both 9.37 billion dollars in the first quarter and 8.19 billion dollars over the same period a year earlier. Earnings per share (EPS) are estimated at 4.74 dollars, also up from 3.29 dollars a year earlier.

Support and resistance

On the D1 chart, the quotes are trading within the ascending corridor with the boundaries of 700.00–585.00, holding near the annual maximum of 647.00.

Technical indicators hold a stable buy signal, which has somewhat weakened against the background of a local correction: the fast EMAs of the Alligator indicator are above the signal line, and the AO histogram, being in the purchase zone, forms corrective bars.

Support levels: 632.00, 587.00.

Resistance levels: 653.00, 700.00.

Trading tips

If the local growth of the asset continues and the price consolidates above the resistance level of 653.00, one may open long positions with the target of 700.00 and stop-loss of 630.00. Implementation time: 7 days and more.

In the event of a reversal and continued decline of the asset, as well as price consolidation below the support level of 632.00, one can open short positions with the target of 587.00 and stop-loss of 650.00.