Current trend

Shares of Netflix Inc., an American entertainment company, as well as a streaming service for movies and TV series, are trading at 683.00.

Management reported the completion of the issuance of senior unsecured notes of 1.8B dollars, the majority of which, worth 1.0B dollars, are notes with an interest rate of 4.90% due in 2034, and the others are notes due in 2054 with a consolidated interest rate of 5.40%. The underwriters were major market players: Morgan Stanley & Co., Goldman Sachs & Co., and Wells Fargo Securities LLC. The proceeds will reportedly be used to pay down the outstanding debt on older bonds, which are 3.00% and 5.87% due in 2025. Netflix Inc.’s move comes as competition in the streaming space heats up as the company struggles to maintain market share.

Meanwhile, the Q2 report showed revenue rising to 9.56B dollars from 8.19B dollars in the same period last year, while earnings per share came in at 4.88 dollars, above both the 4.74 dollars forecast and the 3.29 dollars per share previously reported.

Support and resistance

On the daily chart, the stock is trading within a broad ascending channel of 740.00–600.00, hovering near its year’s high of 697.00. Technical indicators maintain a stable buy signal, received last Friday: fast EMA of the Alligator indicator consolidated above the signal line, and the AO oscillator histogram, remaining in the buy zone, continues to form new ascending bars.

Resistance levels: 697.00, 743.00.

Support levels: 667.00, 591.00.

Trading tips

Long positions may be opened after the consolidation above the resistance level of 697.00, with the target at 743.00. Stop loss – 680.00. Implementation period: 7 days or more.

Short positions may be opened after the consolidation below the support level of 667.00, with the target at 591.00. Stop loss – 690.00.