Will Netflix crack under pressure as Q3 is around the corner or will the uprise continue into the New Year?

The American streaming service has certainly felt the pressure in the first 6 months of 2022 as its competition has drastically increased. However, Netflix has shown signs of positivity after bouncing from the 5-year lows.

From a technical aspect, major support sits at June 2022 lows of $151-$155 region. Taking a Fibonacci retracement to the chart, minor support sits at $206. A break of this could see the stock slide very fast towards its lows again. Looking at the indicators, MACD is positive with the RSI reading 43 suggesting a neutral stance. Towards the upside, tough resistance sits at the 23.6% fib at $285.02. A break above here could allow the stock to move towards the 38.2% retracement ($365.65), where then the major fall in April would have been recovered, giving the stock a supportive base.

Q3 results (if positive) could stimulate a move towards the upside fib level of $285 but the continuous pressure of cheaper subscriptions and loss of subscribers may result in loss of earnings, leading to a further downwards spiral towards the support. At this current moment in time, Netflix continues to struggle even laying off staff to ensure it can cope with the headwinds it will face later in the year and in 2023. Q3 results are due on 18th October 2022 so this is a stock to watch as another decline could become a good buying opportunity given the stock is already down 68% from its highs.