Netflix Bulls Are Winning The Binge — But Is A Plot Twist Coming After Earnings?

Netflix Inc. (NASDAQ:NFLX) has been one of Wall Street's top binge-worthy stocks, surging nearly 94% over the past year and up more than 40% year to date. But ahead of its second quarter earnings report Thursday after market close, there's tension in the charts — and investors may want to grab the popcorn.

Netflix is expected to post earnings per share of $7.06 on revenue of $11.04 billion, per Benzinga Pro data, riding on the back of password-sharing crackdowns, advertising expansion and a stronger-than-expected content slate. Yet, despite its strong run, technical indicators suggest some turbulence may be ahead.

Read Also: Netflix’s Q2 Earnings Could Impress: Analyst Predicts 30% Profit Growth From Ads, Price Hikes

Chart created using Benzinga Pro

Strong Trend, But Signs Of Selling

Netflix remains above its five-day, 20-day and 50-day Exponential Moving Averages (EMAs) — a classically bullish signal. However, its share price of $1,257.27 is currently trading below its 8-day and 20-day Simple Moving Averages (SMAs), both of which signal potential near-term bearish pressure.

This divergence hints that traders are starting to take some chips off the table ahead of earnings — potentially bracing for a disappointment or simply banking profits after a phenomenal run.

MACD, RSI Flash Mixed Messages

The Moving Average Convergence Divergence (MACD) sits at 10.30, which indicates bullish momentum remains strong under the hood. Yet the Relative Strength Index (RSI) is at 51.13 — right near the midpoint — suggesting Netflix isn't overbought or oversold, leaving room for a sharp post-earnings move in either direction.

Investors riding the bull wave may want to keep a tight stop, especially with the stock just shy of its all-time high of $1,341.15. A blowout quarter could ignite a breakout, while even a minor miss might trigger a pullback toward its 50-day SMA at $1,225.70.

Either way, Netflix is setting the stage for high drama — and this episode could come with a twist.

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