The company reports earnings after the bell tonight, and there are some important technical features to be aware of ahead of the news, according to theflyonthewall.com. The daily chart illustrates a classic “blow off” topping process which, if we were past earnings news, would signal likely technical weakness ahead. The big area to watch as a trigger related to this topping process is at the $330 area. That has been both prior resistance and support.
A break below $330 would be bearish for price. On news that fails to meet bullish expectations whether in reported numbers or guidance, additional downside objectives could be at the following supports: $300.85, and $267.92. On better than expected news, resistance as upside objectives would be at $364.69, $380.58, and $400.42. There is a relatively large short-base in the name at 6.6% of the float short, though the skew is not as extreme as it has been and is the lowest it has been in the past year.
On weaker news, there would be less support as a result of short-covering and less fuel for a squeeze on an upside surprise.
Analysts have a consensus price target of $359.71 on Netflix Inc., (NASDAQ:NFLX) which indicates a 6.42% upside. The consensus rating of the stock is a HOLD with a score of 2.26. There are currently 23 Hold Ratings, 4 sell ratings and 15 Buy ratings on the stock.
A recent analyst action consisted of Oppenheimer upgrading the stock from Market Perform to Outperform on April 7th, 2014.
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