Good morning Traders!
Well, it’s that time of the year again, and after a bruising year in many corners of the stock
market, traders and investors alike will be looking at earning reports as well as future
earning estimations and predictions for clues on direction.
Netflix is due to report on the 19th of January after the market closes. Disappointing
reports back in April 2022 caused a plunged in the share price and a market cap lose of
over $50 billion.
After the strong drop in April and a consolidation at the lows, the market has slowly been
pulling back into the breakout level of around the 330 mark. After a touch from below at
that level, the market reacted and retraced back to it’s previous swing Higher Low, where
it found more buyers which pushed the price back up at the level. In recent days the
market has been consolidating underneath this level, with MACD bullish convergence on
the Weekly chart.
Tesla is due to report on the 25th of January after the market closes. With the latest news
of a price reduction on it’s cheapest Model Y by 20% and a hefty discount on the
expensive models, the company earning reports will be closely watched.
The Monthly chart is showing a strong downtrend, and so is the weekly chart. After
breaking the previous swing Low on the Weekly chart, the market has push to a new
Lower Low. The market is currently over extended from it’s moving averages and is in the
process of pulling back. Drawing the Fibonacci retracement of the latest weekly move,
has the 61.8% retracement clustering quite nicely with the previous swing Low at around
the 163 mark as well as it’s moving averages.