Netflix shares rose for the second day as the market climbs

FUNDAMENTAL OVERVIEW

On Wednesday, Netflix Inc. (NASDAQ: NFLX) witnessed a 2.96% increase in its stock price, marking a second consecutive day of gains amid the overall bullish trend in the stock market. Despite this positive momentum, the streaming giant’s shares still trailed $23.06 below their 52-week peak achieved on July 19th.

In a larger context, Netflix was not the sole media company experiencing a favorable day on the stock exchange. Counterparts in the industry, such as Apple Inc (NASDAQ: AAPL), Walt Disney (NYSE: DIS) Co., and Comcast Corp (NASDAQ: CMCSA), also observed upward movements in their respective share prices, albeit to varying degrees.

Despite the positive shift in share prices, Netflix reported a lower-than-average trading volume of 5 million shares exchanged. This relatively muted trading activity could suggest a cautious sentiment among investors as they assess their confidence in the company’s prospects.

The recent upswings for both Netflix and its competitors coincide with indications of recovery in the stock market, prompting many investors to seek opportunities for potential growth. Nevertheless, the below-average trading volume for Netflix indicates that, despite optimism, there exists a level of hesitation in the market.

In terms of data, Netflix boasts a strong market capitalization of $202.18 billion USD. The company’s P/E ratio, a crucial valuation metric, stands at 45.24, suggesting that the stock is trading at a high earnings multiple. In the last twelve months leading up to Q3 2023, Netflix has achieved a 4.03% revenue growth, reflecting a consistent improvement in its top-line performance.

NETFLIX TECHNICAL ANALYSIS DAILY CHART:

Technical Overview

Netflix is currently trading within an up channel.

Netflix is positioned above all Moving Averages (SMA).

The Relative Strength Index (RSI) is in the buying zone, while the Stochastic oscillator suggests a positive trend.

Immediate Resistance level: 473.61

Immediate support level: 453.14

HOW TO TRADE NETFLIX

Following a notable surge, Netflix stock experienced a decline, retracing to the 61.8% Fibonacci zone where it found support and resumed an upward trajectory. Currently, the price is approaching a crucial resistance zone, and a breach of this zone could lead to further upward movement.

TRADE SUGGESTION- STOP BUY– 477.76, TAKE PROFIT AT- 509.29, SL AT- 455.51.