Netflix, Inc. (NFLX​) shares jumped more than 5% on Thursday after the company announced that the price of its standard service would increase from $9.99 to $10.99 per month. In addition, the company's premium service that includes more devices and ultra-HD resolutions will increase from $11.99 to $13.99 per month. The higher prices are designed to help offset more than $6 billion in spending on original content production.

Many investors are betting that the higher prices won't be enough to deter many subscribers from Netflix, especially because its service remains significantly cheaper than cable television. However, Wells Fargo analysts believe that the move could help The Walt Disney Company (DIS) as it rolls out its own streaming app for its existing content. Hulu – owned by Disney, Comcast Corporation (CMCSA) and Twenty-First Century Fox, Inc. (FOX) – could also benefit. (See also: Disney Will Need 32M Subscribers to Beat Netflix.)

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

From a technical standpoint, the stock broke out from an ascending triangle chart pattern and its R1 resistance at $190.05 to 52-week highs. The relative strength index (RSI) is approaching overbought levels at 64.77, but the moving average convergence divergence (MACD) experienced a bullish crossover that could signal a new uptrend. Traders should maintain a bullish bias on the stock over the coming sessions.

Traders should watch for a brief period of consolidation above R1 support at $190.05 due to the lofty RSI reading before the stock continues its move higher to test R2 resistance at $198.76. If the stock breaks down from R1 support, traders could see a move to lower trendline support near the pivot point at $181.25. The $200.00 level could be an important psychological resistance level over the intermediate term as well. (For more, see: Netflix Q3 Additions May Beat Views: UBS Ups PT.)

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

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