Netflix, Inc. (NFLX) shares fell more than 10% in early trading on Tuesday after second quarter financial results missed the mark on revenue and subscriber growth. Revenue rose 40.1%  to $3.91 billion – missing consensus estimates by $30 million – while net income of 85 cents per share beat consensus estimates by six cents per share.

Subscriber growth was the biggest concern in the quarterly report. The company reported 670,000 domestic streaming additions, which fell well short of the 1.21 million consensus and 1.2 million guidance. International streaming additions came in at 4.47 million for the quarter, which also fell short of the 5.06 million consensus and 5 million guidance.

Analysts had mixed feelings about the financial results. Deutsche Bank cut its rating from Buy to Hold, saying it was difficult to model the company's global growth, while BMO Capital and Stifel both recommended taking advantage of the dip and picking up shares, maintaining price targets of $400.00 and $406.00, respectively. (See also: Wall Street Reacts to Netflix Numbers as Shares Slide.)

Technical chart showing the performance of Netflix, Inc. (NFLX) stock

From a technical standpoint, Netflix stock fell below key support levels to reaction highs dating back to mid-April of this year and could have formed a bearish double top pattern. The relative strength index (RSI) fell to slightly oversold levels of 40.10, but the moving average convergence divergence  (MACD) accelerated its downtrend. These indicators suggest that the stock could see a prolonged decline, although the stock recovered to the 50-day moving average by late morning.

Traders should watch for some consolidation below the 50-day moving average at $370.55 before the stock resumes its downtrend. The stock could move lower to S2 support at $318.77 or the 200-day moving average at $275.80 given the bearish MACD reading. If the stock rebounds above the 50-day moving average, traders should watch for a a move toward key resistance at around $390.00 to $400.00 or prior highs at around $430.00. (For more, see: 3 Streaming Stocks Not Named Netflix That Can Soar.)

Chart courtesy of The author holds no position in the stock(s) mentioned except through passively managed index funds.