Netflix (NFLX) shares traded more than 2% higher through the day on Wednesday as the stock prepares for a technical breakout rally.
Shares of Netflix made a run at breaking above $700 a little more than a week ago only to see the stock make a quick retreat to $680 as the rest of the market saw an increase in selling pressure. That’s about to change today.
This morning, Evercore ISI raised its price target for Netflix stock from $710 to $750 in a note to clients on Tuesday, citing strong survey results and a promising outlook for the company.
Currently, the average price target for Wall Street analysts stands at $691 per share for Netflix. A move above $700 will not only put the stock above another psychological price level, but also start a cycle of price target upgrades from Wall Street as analysts look to catch up with the stock’s performance.
Current analyst recommendations on Netflix show that 34% of analysts tracking the stock have it ranked a “hold” or “sell”, even though the Netflix shares have returned 41% year-to-date, beating two of the Magnificent Seven stocks (NVIDIA and Meta).
Watch for a break above $700 to power Netflix shares another $50 higher over the short-term as investors and analyst begin chasing the stock higher.
Netflix is set to announce their next earnings report on October 18.
Shares of Carnival Cruise Lines (CCL) rallied more than 4% on Wednesday as investors are jumping back on board with some of the consumer discretionary names.
Earlier in the month we saw precipitous selling of the airline and cruise stocks after a rash of softer than expected outlooks from the travel industry.
That wasn’t the case for Carnival Cruise Lines who reported their last earnings report in June, beating the Street’s targets and raising their outlook for the current quarter.
Nonetheless, investors sold Carnival Cruise Lines stock along with the rest of the industry to a recent low of $14 on August 5.
Since that bottom in the stock, Carnival Cruise shares have rallied more than 20% to their current price of $17.35.
Today’s move higher took the stock back above its bullish 50-day moving average, a sign that the rally is likely to continue right up to Carnival’s next earnings date on October 18.
Carnival shares also moved back above their longer-looking 200-day moving average last Friday, signaling long-term strength in the stock’s trend.
Investors should expect some headwinds from the market’s general seasonal weakness in September. That said, the long- and intermediate-term outlook for Carnival Cruise Lines remains bullish with a target of $20.
14 different optionable stocks are approaching the $10 price level with a bearish pattern. Today, Walgreens Boots Alliance (WBA) took its name off the list as shares ripped through $10 to close at $9.50.
The move came at the hands of overhead pressure from the stock’s 20- and 50-day moving averages, both of which have been in bearish trends since February.
Investors have been taking the opportunity to buy the support lent to Walgreen Boots Alliance’s shares for the last week as it looked like $10 would hold, but today’s increase in selling volume served as the last straw.
Historically, a break below $10 will target the $8 price for the underlying stock.
Today’s close did find support on the stock’s bottom Bollinger Band, suggesting that we may see some buying over the next few trading sessions.
Such buying will be temporary and met with more selling pressure, pushing the stock to $8.
Walgreen Boots Alliance is set to announce earnings results on October 10.
Until then, shares remain in a long-term bearish trend with a price target of $5.
