Netflix Turns lower Ahead Of Earnings

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Despite having a solid start to the year, Netflix has struggled to maintain bullish momentum and has twice stalled below the October highs. Matt Simpson takes a technical look.

It’s earnings season for the US tech sector, with Netflix, Facebook, Microsoft, Amazon, Google and Apple all due to report over the coming days.

Whilst Netflix has rallied 39.5% this year, the bulk of its gain came in January and has struggled to keep pace with Facebook. Furthermore, its found resistance around $386 and prices are now retreating from this key level ahead of Wednesday’s report. If earnings are to miss, we’ve expected it to trade to the lower bounds of its sideways range, although it may require a particularly strong beat for it to crack resistance. If it manages to break higher, we’d want to see if 386 can turn into support first.

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