Netflix earnings and Gold eases from 2000
Netflix => The stock trades down 35% in 3-month
BTC/USD => The cryptocurrency rises from a monthly low
Gold => The commodity falls back from a 5-week high
Netflix earnings preview
Netflix Q1 earnings are due after the close, and Wall Street is expecting EPS of $2.90 on revenue of $7.93 billion, this compares to EPS of $3.75 on revenue of $7.16 billion a year earlier.
Heading into earnings, the stock has underperformed the broader market, dropping 35% over the past 3 months. The numbers come after the steep fall in share price and after disappointing growth guidance in the last quarter, as competition heats up. Spending on content will be under the spotlight in order to keep up with competitors.
Subscriber numbers are expected at 2.5 million, down from 4 million in the same period in 2021. The suspension of service in Russia could also mean the loss of around 1 million subscribers, which is not a huge market but was earmarked as a potential area of strong growth.
Where next for Netflix share price?
Netflix trades over 50% down from its November all-time high.
The price fell to a low of $330, which is where it continues to trade, a level last seen in March ’20. The price trades below its 50 & 100 SMA, and the RSI supports further downside.
Sellers would need to break below support at $330 to open the door to $300 round number and $290 the March 2020 low. Any recovery would need to rise above $400 to form a higher high and look towards $460, the 100 SMA, and the February high.
Bitcoin recovers from 1 month low
Bitcoin broke below the critical support at 40k to hit a one-month low of $38,577 in the previous session, a level which was last seen on 15th March before rebounding higher.
Recent weakness in the cryptocurrency could be related to the selloff in global stock markets and the deadline to submit 2021 US tax returns by 18th April. Last year a selloff was also evident between January 1st and April 15th, most likely related to a tax selloff. A stronger USD has also been a headwind for BTC.
Still, BTC/USD rebounded, recapturing 40k before running into resistance at the 50 sma at 41250. Buyers will want to see a close above this level for further upside towards 45k.
Gold eases back from $2000.
Gold rose to just shy of $2000k at the start of the week before ending the session just 0.25% higher at $1978.
The precious metal was boosted by high inflation expectations and uncertainty over the ongoing Ukraine crisis, which lifted demand for the safe haven and the traditional hedge against inflation. News that the World Bank reduced global growth forecasts for the year to 3.2%, down from 4.1%, due to the impact of the Russian war and the Western sanctions, which have driven up energy and food prices, also boosted the safe haven, temporarily.
Looking ahead across the week, inflation data from Canada, New Zealand, and the eurozone will be in focus. Today. US mid-tier data on housing starts and building permits could direct the US dollar and influence the dollar-denominated yellow metal. A speech by Fed official Evans will also be under the spotlight.
Support can be found at 1967 (high 24 March) and 1950 (March 17 high).
Resistance for the pair can be seen at $1998 (yesterday’s high) and $2000 (round number).
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