Outlook on Netflix ahead of its earnings tomorrow

Taking a look at Netflix ahead of its earnings tomorrow. Netflix is the first of the big tech companies to report, with Tesla later in the week. Currently, its share price is trading at around $488.39 a share. From a technical standpoint, we can see that it has some support along the ascending trendline, currently reading $477.66, which is right on the trendline. A move below would then face $473.00, only a break below $473.00 could see a move lower towards $462-$463. Key resistance here for Netflix is the level of $500.84, which is last year’s high. We can see that the bulls tried on the 11^th and 12^th of Jan to move higher, but they were rejected on both occasions. This led to a small retracement towards the trendline support, however, the price seems to have consolidated a little since then. Now, there is a potential set up for yet another attempt to move higher but this will be most likely determined by the earnings outcome. A break and close above the resistance of $500.84 would then allow the bulls to target the area of $510-$520 in the near term. Looking at the technical indicators, they are certainly neutral as expected. The MACD is almost flat with RSI reading 55.