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

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

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

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

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

Stock Bottoms at 50-Day Moving Average

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

While the stock failed to close above the popular indicator ahead of the quarterly results, trading volumes registered their highest level since mid-October, suggesting that some larger market 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 identify two major support levels worth watching during pullbacks.

Bars Pattern Analysis

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

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

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

Major Support Levels to Watch

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

Finally, a close below this level opens the door for a more significant decline to around $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.

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