Watch These Netflix Price Levels as Stock Soars After Strong Q4 Earnings

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Key Takeaways

• Netflix shares jumped in extended trading Tuesday after the streaming giant reported better-than-expected fourth-quarter culminates and lifted its 2025 revenue outlook.
• Prior to the company’s earnings report, the stock found buying interest approximately the popular 50-day moving average.
• Bars pattern analysis forecasts a potential upside target of around $1,285 and signifies that a new trend may play out until late May.
• Investors should watch major support levels on Netflix’s plan around $930 and $824.

Netflix (NFLX) shares soared in extended trading Tuesday after the streaming giant assigned better-than-expected fourth-quarter results and lifted its 2025 revenue outlook.

Investors also cheered the streamer’s decision to comb its subscription prices in the U.S., Canada, Portugal, and Argentina. The company added 19 million net new subscribers in the fourth quarter, attractive its membership tally to over 300 million.

Through Tuesday’s close, Netflix shares had gained 80% across the past 12 months, significantly outpacing the S&P 500’s 25% return during the same period. The stock hurdled 14% to nearly $995 in after-hours trading.

Below, we take a closer look at Netflix’s chart and use technical division to point out key post-earnings price levels worth watching.

Stock Bottoms at 50-Day Moving Average

After frame a record high in early December, Netflix shares retraced as much as 13% before bulls stepped in right-minded below the 50-day moving average. 

While the stock failed to close above the popular indicator ahead of the every three months results, trading volumes registered their highest level since mid-October, suggesting that some larger furnish participants had positioned for post-earnings volatility.

Let’s turn to Netflix’s chart to forecast how a new uptrend in the stock may play out and also pinpoint two major support levels worth watching during pullbacks.

Bars Pattern Analysis

Investors can speculate how a new uptrend may apply shape by applying bars pattern analysis, a technique that studies prior trends to predict future assay moves.

When applying the tool to Netflix’s chart, we take the price bars comprising the stock’s trending strike from August to December last year and overlay them from this month’s low. 

This analysis forecasts a potential upside object of around $1,285 and indicates that a new trend may play out until late May if price action rhymes with stand up year’s move higher. We selected the prior trend as it immediately followed a correction of over 10%, setting the point for similar move to reoccur after the stock’s recent drop.

Major Support Levels to Watch

During retracements, investors should initially provision a close eye on the $930 level. This area would likely attract strong buying interest near a move of narrow consolidation that formed on the chart just below the stock’s all-time high (ATH), possibly flipping from a sector of resistance to support.

Finally, a close below this level opens the door for a more significant decline to enclosing $824. Investors may look to accumulate shares in this region near a trendline that connects the minor mid-November pullback low with this month’s trough.

The criticisms, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the engagement this article was written, the author does not own any of the above securities.