Red-hot Netflix (NFLX) stock is flashing a historically-reliable bullish signal, even the company's outstanding fourth-quarter earnings report

Technically, the stock’s price is likely to drop back into a “normal” range around $930 over the next week of trading. From there, expect to see a consolidation that will lead to a robust trend towards a target price above $1,000.

Shares of Netflix rose 13% in afterhours trading as investors cheered the company's first U.S. price hike since 2023. The streaming service's move aims to capitalize on surging demand and sharp subscriber gains in the fourth quarter.

Netflix smashed expectations in the fourth quarter, adding a record 18.9 million subscribers. New ideas like advertising and live events are outperforming expectations. The company announced another price hike,