Netflix reported a drop in overall subscriber number for the first time in over a decade. Company's share price plunged over 20% in the after-hours trading, hitting a sentiment towards the whole tech sector. Nasdaq-100 (US100) pulled back around 1% after the close of the Wall Street session but managed to regain part of the lost ground already. However, taking a look at the US100 chart at daily interval, we can see that a potential major bullish pattern is building up. The index managed to defend the support zone ranging around 23.6% retracement of downward impulse launched in November 2021 (13,850 pts area). As a result, the right shoulder of an inverted head and shoulders pattern may have been painted. In case, the ongoing recovery move extends, the attention will shift to the neckline of the pattern, marked with 61.8% retracement in the 15,300 pts area. Breaking above could hint at acceleration of the upward move and a potential rally towards a textbook range of the breakout from this pattern - 17,550 pts. Traders should keep in mind that Tesla earnings (to be released today after close of the Wall Street session) may also have a big impact on the overall tech sector and US100.
Source: xStation5
