Current trend

Entertainment company Netflix Inc. remain in a corrective trend at around 792.00.

Despite its stable position in the streaming market, Netflix Inc. continues to face some challenges. In particular, it became known that last week, searches were conducted in the company's offices in France and the Netherlands, initiated by the special unit for combating money laundering, Parquet national financier (PNF). Netflix Services France, a French subsidiary, is suspected of underreporting its figures to reduce tax payments. According to the 2019-2020 report, the division posted revenues of 47.0 million euros, approximately 1.0 million euros of which was paid to the French budget. However, in 2021, the streaming service reported revenue of 1.2 billion euros, a sharp contrast to 47.0 million euros the year before. In addition, in 2022, something similar happened in Italy, where the company immediately agreed to settle the dispute by paying 55.8 million euros in compensation. At this point, the searches are not related to any legal proceedings and the company has not been formally charged, which will not affect the stability of Netflix Inc.'s operations in the region for now.

The company's third-quarter financial results showed revenue rising to 9.82 billion dollars from 9.56 billion dollars in the same period last year, while earnings per share (EPS) were 5.40 dollars versus the 5.12 dollars forecast, up from 3.73 dollars last year.

Support and resistance

On the daily chart, quotes continue to attempt to break out of the wide ascending corridor with boundaries of 800.00–680.00, holding near the annual high of 790.00.

Technical indicators are holding a steady buy signal, which is still strengthening: the fast EMAs of the Alligator indicator are above the signal line, and the histogram of the AO oscillator in the buy zone is forming new ascending bars.

Support levels: 778.00, 710.00.

Resistance levels: 805.00, 878.00.

Trading tips

If the asset continues to grow, as well as the price consolidates above the resistance level of 805.00, long positions with a target of 878.00 will be relevant. Stop-loss — 780.00. Implementation time: 7 days and more.

If the asset reverses and continues declining, and the price consolidates below the local support level at 778.00, short positions can be opened with the target at 710.00. Stop-loss — 810.00.