📺 Bonus Deep Dive: Netflix’s Breakout Moment
Blowout Earnings, Big Ambitions, and a Technical Setup Worth Watching
Hey traders and investors,
With the market closed for Good Friday, I figured it’s the perfect time to drop a bonus deep dive — and I couldn’t think of a better name to focus on than $NFLX after they crushed earnings and spiked in after-hours. This isn’t just a short-term pop — there’s a story unfolding here, both fundamentally and technically, and I want to walk you through what I’m seeing on the chart and how I’d think about playing it.
🎬 Netflix's $1 Trillion Vision Isn't Just Talk
Let’s set the stage first:
Netflix made it loud and clear: they’re aiming for a $1 trillion market cap by 2030, and if you’ve seen their latest earnings, that doesn’t sound crazy. They’re doubling down on ad-supported revenue, they’ve got pricing power, and they’re not seeing any meaningful churn even after raising prices — in fact, France just got a hike and no one blinked.
Here’s the highlight reel:
Pivotal Research boosted their price target to $1,350 and said straight up: Netflix has won the global streaming war.
Oppenheimer raised theirs to $1,200, pointing to resilient demand and strong guidance on ads.
BMO and MoffettNathanson both reiterated outperform ratings with a focus on long-term ad revenue and pricing power.
Now let’s shift from the Wall Street commentary to what really matters for us — the chart.
📈 Technical Breakdown: What's the Chart Telling Us?
Here’s a look at $NFLX on the daily — and this thing is clean.
🔹 Price Action:
The stock closed at $973.03, but more importantly, it's trading around $1,006 in after-hours, a strong 3.4% move higher after the report.
That after-hours breakout puts it above recent resistance levels — which is key.
🔹 Moving Averages:
Price is trading above the 20-day, 50-day, and 200-day moving averages — that’s a bullish alignment.
The 20-day EMA just crossed back over the 50-day, which gives us a short-term bullish crossover.
🔹 Volume:
Volume has been increasing with the breakout, especially on up days — always a good sign that institutions are stepping in.
🔹 RSI (Relative Strength Index):
Sitting around 56, so there’s plenty of room before this becomes overbought — no red flags here.
🔹 MACD:
The MACD just crossed above the signal line and is gaining steam — that’s momentum confirming the move.
🔹 Stochastic Oscillator:
Currently at 78 and rising. It's approaching overbought territory, but that’s what you'd expect during a bullish breakout — it doesn’t mean it’s done running, just that you want to stay nimble.
💡 How I'd Play It: Trader vs. Investor
For Traders:
If you’re aggressive, the clean breakout above $970 offers a clear entry point — especially now that we’ve cleared that resistance with earnings as the catalyst.
Set a stop under the breakout level — around $950 gives it some room to breathe.
Near-term target: $1,050–$1,100, which lines up with some previous levels and psychological zones.
If it gaps and holds Monday above $1,000 — that’s your confirmation to ride the momentum.
For Investors:
If you're thinking longer-term, this earnings report + bullish price structure = a solid case to start a position.
With a 2030 vision of $1 trillion market cap, that implies over 2x upside from here — and you’re not paying a frothy multiple for it either.
🔚 Wrapping It Up
Netflix just reminded everyone that they’re not just still in the game — they might be the game. With fundamentals firing, pricing power intact, and a bullish chart that’s confirming the story, this is one of those setups where both traders and investors can find something to like.
Whether you're looking for a quick breakout trade or a long-term hold, this one deserves a spot on your radar — especially after a week like this.
Enjoy the long weekend — and let’s see what happens when the market reopens. I’ll be watching this one closely! 🎯-EC
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*Disclaimer: The examples in The Options Oracle are my opinion, not financial advice.