Welcome to our comprehensive weekly analysis of Netflix (NASDAQ:NFLX) for Week 2, January 2026. This blog delivers a detailed review of NFLX’s technical chart, recent news, fundamental context, and actionable trading scenarios for the week ahead. Whether you’re a trader or a long-term investor, this analysis will help you navigate the current market landscape for Netflix. 📊

1. Weekly Chart Overview

• Trend: Bearish – Price remains below key moving averages, confirming a downtrend.

• Pattern: Descending channel with repeated rejections at lower levels.

• Momentum: RSI at 27.27 (oversold), suggesting a potential for a short-term bounce, but the overall bias remains bearish.

• Volume: Increasing on downward moves, indicating strong selling pressure.

• Key Support: $88.00 (major), $85.00 (minor)

• Key Resistance: $92.00 (major), $93.34 (minor)

2. Latest News & Catalysts (Past 7 Days)

• Stock Performance: NFLX closed at $89.44 on Jan 10, down 1.21% for the day, underperforming major indices. [Zacks]

• Warner Bros. Discovery Bid: Netflix’s bid for Warner Bros. Discovery has raised investor concerns about deal risk, regulatory scrutiny, and integration challenges. WBD’s board supports Netflix’s offer, rejecting a higher competing bid from Paramount/Skydance. [Robinhood]

• Analyst Action: Goldman Sachs cut its price target from $130 to $112, maintaining a Neutral rating. The stock is down ~27% since the previous Goldman note. [Nasdaq]

3. Technical Analysis

• Support Levels: $88.00 (major), $85.00 (minor)

• Resistance Levels: $92.00 (major), $93.34 (minor)

• Trend: Downtrend, with price below 10- and 21-day EMAs

• Pattern: Descending channel; price continues to reject at lower levels

• MACD: Bearish, confirming downtrend momentum

• Volume: High on down days, confirming strong selling pressure

• RSI: Oversold (27.27), suggesting risk of a short-term bounce but overall bearish bias

Technical Table

4. Fundamental & News Impact

• Upcoming Earnings: Netflix is scheduled to report earnings on Jan 20, 2026. Consensus expects EPS of $0.55 (+27.91% YoY) and revenue of $11.97B (+16.79% YoY). Full-year EPS is projected at $2.53 (+27.78%), with revenue flat at $45.09B.

• Valuation: Forward P/E of 28.18, a premium to industry average (11.69). NFLX is in the top 45% of its industry but remains vulnerable to de-rating if growth disappoints.

• Strategic Moves: The Warner Bros. Discovery bid is a major overhang, with legal and integration risks. Analysts highlight Netflix’s growth levers in advertising and international markets, but also note its lack of direct AI exposure compared to other tech giants.

• Macro Sensitivity: As a consumer discretionary/media stock, NFLX is sensitive to consumer spending and sector consolidation trends.

5. Actionable Scenarios for the Week Ahead

• Aggressive traders: Short near $92.00 with stop at $94.00, target $88.00; or wait for breakdown below $88.00 to short toward $85.00.

• Conservative traders: Wait for confirmation of breakout or breakdown before entering new positions.

• Risk management: Limit risk to 1% of capital per trade; consider ATR-based stops to adjust for volatility.

6. Key Takeaways & Outlook

• Bearish bias persists with price below key moving averages and strong selling volume.

• Oversold RSI suggests a possible short-term bounce, but no reversal signal yet.

• Major news risk: Warner Bros. Discovery bid and upcoming earnings (Jan 20) are critical catalysts.

• Trading focus: Watch $88.00 and $92.00 for directional clues.

Stay vigilant for news updates and earnings surprises that could shift sentiment quickly. 📈

This analysis is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making trading decisions.