Netflix's Market Saga - Navigating Soaring Subscriptions, Unexpected Stock Dips, And The Battle To Breach The $500 Resistance

• Netflix's subscriber count witnessed a significant growth from 232 million in Q1 to 238 million in Q2 of 2023.
• Despite better-than-expected Q2 earnings and an increase in subscribers, Netflix's stock price surprisingly fell.
• This strong level of support triggered a reversal trend, with the stock witnessing an upward push, closing 3.10% higher on the subsequent Monday and marking an overall rise of 47% for 2023.
• Looking ahead, Netflix faces the challenge of surpassing a high of $485 per share and breaking the psychological resistance at the $500 mark, which could potentially trigger further appreciation in its stock value.

Netflix Inc's NFLX subscriber base continues to soar, reaching a remarkable 238 million in Q2 of 2023, up from 232 million in Q1.

This impressive growth of 6 million subscribers is a testament to the enduring allure of the brand.

While one might expect such remarkable subscriber growth to be reflected in rising stock prices, the market had a different agenda.

Netflix's stock price experienced a decline after reaching its peak of $485 per share on July 19th, following the announcement of an impressive Q2 earnings results.

Despite surpassing estimated earnings with $3.29 per share compared to the expected $2.85, the immediate impact on stock value was not positive.

In fact, the price dropped by a notable 15% before stabilizing at the $423.21 support level, formed from the high of June 2018.

It seemed like the decline was going to continue on a downward trend, however, the $423.21 support level held strong, instilling confidence in the buyers and allowing them to overcome the sellers.

As a result, the stock quickly reversed its downward trend and began moving upwards.

By the end of the following Monday, the stock had risen by 3.10%. Overall, this translates to an impressive 47% increase in Netflix's stock price in 2023 so far.

As Netflix continues its recovery, the next hurdle it faces is surpassing the recent high of $485 per share.

Breaking this barrier will require tackling the formidable psychological resistance level of $500, a challenge that, if successfully overcome, could open the floodgates for further bullish trends.

After the closing bell on Monday, July 31, the stock closed at $438.97, trading up by 3.10%.