Netflix Stock Soars After Strong Q4 Earnings: Key Price Levels to Watch

Netflix (NFLX) shares jumped in extended trading Tuesday after the streaming giant reported better-than-expected fourth-quarter results and lifted its 2025 revenue outlook. The stock soared 14% to nearly $995 in after-hours trading, adding to its 80% gain over the past 12 months. Let's take a closer look at Netflix's chart and use technical analysis to point out key post-earnings price levels worth watching.

Stock Bottoms at 50-Day Moving Average

After setting a record high in early December, Netflix shares retraced as much as 13% before bulls stepped in just below the 50-day moving average. While the stock failed to close above the popular indicator ahead of the quarterly results, trading volumes registered their highest level since mid-October, suggesting that some larger market participants had positioned for post-earnings volatility.

Bars Pattern Analysis

Investors can speculate how a new uptrend may take shape by applying bars pattern analysis, a technique that studies prior trends to predict future price moves. When applying the tool to Netflix's chart, we take the price bars comprising the stock's trending move from August to December last year and overlay them from this month's low. This analysis forecasts a potential upside target of around $1,285 and indicates that a new trend may play out until late May if price action rhymes with last year's move higher. We selected the prior trend as it immediately followed a correction of over 10%, setting the stage for similar move to reoccur after the stock's recent drop.

Major Support Levels to Watch

During retracements, investors should initially keep a close eye on the $930 level. This area would likely attract strong buying interest near a range of narrow consolidation that formed on the chart just below the stock's all-time high (ATH), possibly flipping from a region of resistance to support.

Finally, a close below this level opens the door for a more significant decline to around $824. Investors may look to accumulate shares in this region near a trendline that connects the minor mid-November pullback low with this month's trough.

In conclusion, Netflix's strong Q4 earnings and subscriber growth, coupled with its bullish outlook, have sent the stock soaring. As the stock continues to climb, investors should keep an eye on key support levels around $930 and $824 during potential pullbacks. By monitoring these levels and applying technical analysis tools like bars pattern analysis, investors can make informed decisions about when to buy or sell Netflix stock.