All eyes are on Netflix (NFLX) this week as they are set to release fourth quarter earnings on Wednesday after the market closes. Analysts are expecting earnings per share to come in at 13 cents on estimates of $2.47 billion in revenue. Shares rallied over 15% when they beat expectations on their third quarter results back in October.

One of the key metrics investors and analysts will be watching closely is subscriber growth, which grew by 3.6 million in third quarter of which 3 million came from overseas growth. Netflix expected to add 5.2 million additions this quarter as they continue to push hard in overseas markets. If NFLX can beat this number we could see shares get a healthy boost.

Another key metric that investors and analysts will be closely watching is content costs. NFLX is working hard at producing more original hits like Stranger Things and Narcos, which has boosted interest in the company and spurred subscriber growth. The company is looking to increase their budget from $5 billion in 2016 to $6 billion in 2017 with an additional 400 hours of original content.

Netflix Technicals Heading Into Earnings

Diving into the daily chart of NFLX above you can see that shares have been in a decent uptrend and have firm control over the big $128 level. Going back to when NFLX reported third quarter earnings in October we can see that shares had a major gap up that sent shares soaring over 15%. Depending on how earnings are for fourth quarter we should see similar volatility leading up to and after the release.  Some important levels to take note of are the $128, $124 and $122 levels along with the 200-day moving average well below at $104.62.

Keep this one on your radar as there will be plenty of trading opportunities throughout the week on this name.

Company Profile

Netflix, Inc. operates as an Internet subscription service company, which provides subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. The company operates its business through the following segments: Domestic streaming, International streaming and Domestic DVD. Netflix obtains content from various studios and other content providers through fixed-fee licenses, revenue sharing agreements and direct purchases. It markets its service through various channels, including online advertising, broad-based media, such as television and radio, as well as various partnerships. Netflix was founded by Marc Randolph and Wilmot Reed Hastings Jr., on August 29, 1997 and is headquartered in Los Gatos, CA. –MarketWatch