NFLX 'Next Flick' Surprise?
Netflix, Inc. $Netflix(NFLX)$ is reporting after market close on Tue Apr 19. Many analysts are predicting a likely miss or at best flat, and poor forward guidance, given headwinds such as suspending operations in Russia (affecting ~1mil. subscribers), and increasing competition from other streamers, hampering its subscribers' growth. It has to resort to increasing price and crackdown on password sharing recently, to shore up its revenue.
Looking at Daily chart (see below) however, price action seems to be forming a bullish ‘W’ double bottom pattern, and could indicate a bounce despite the negative sentiments. Price could likely go below 52wk low of $329.82 potentially trapping sellers before rebounding, targeting Feb 2022 swing high at $458.48 region. Expecting it to fill the gap to $506.98 might be too big of an ask unless there are some surprised catalysts.
NFLX Contrarian Long?
This Long NFLX idea is a contrarian trade and might not play out. If the upside surprise failed to materialise, price could go on a downwards spiral and I would not be surprised if it reached $260-270 range, levels not seen since 2019.
NFLX Daily chart
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NFLX was up 3.18% RTH but after hours with all the headwinds mentioned impacting results and guidance, the contrarian idea did not work out. It spiralled down to estimated downside range of $260-270 pretty fast though. If these level holds, might get a relief bounce, but we see... Trade safe!