Warner Bros Discovery Jumps 3.58% as Technicals Signal Bullish Momentum

Warner Bros Discovery (WBD) rose 3.58% in the latest session to close at 13.31, marking the third consecutive daily gain and bringing its 3-day advance to 4.39%. This price action occurred within the context of broader technical patterns observed across multiple indicators.
Candlestick Theory
Recent candlesticks form a bullish pattern, with the current session's strong white candle (open:12.85, close:13.31) decisively breaking above the prior resistance zone of 13.00-13.04 established on July 17. The consecutive higher lows (12.66→12.76→12.85) and higher highs demonstrate consistent buying pressure. Immediate support now resides at 12.85 (today's low), with secondary support at 12.66. The new resistance level to monitor is 13.39 (today's high).
Moving Average Theory
The moving average configuration remains bullish with the 50-day SMA (≈12.10) positioned above both the 100-day (≈11.30) and 200-day (≈10.40) averages, confirming a sustained intermediate-term uptrend. Price maintains above all three key MAs, which are arranged in bullish sequential order (50>100>200). The expanding distance between the 50-day and 200-day SMA suggests strengthening momentum.
MACD & KDJ Indicators
The MACD (12,26,9) histogram shows accelerating positive momentum, with the fast line maintaining above the signal line after a recent bullish crossover. Meanwhile, the KDJ oscillator (14-period) presents a cautionary signal with the %K line at 88 and %D at 82, indicating overbought territory. While this divergence suggests potential near-term consolidation risk, the MACD's continued positive trajectory tempurs immediate bearish interpretation.
Bollinger Bands
Price is currently testing the upper Bollinger Band (20-day SMA≈12.55, σ=0.60) following a period of band contraction last week. The expansion from contraction reflects renewed volatility, typically supporting continuation patterns. The close near the upper band signals strength, though historically such extremes have preceded short-term pullbacks to the midline.
Volume-Price Relationship
Volume surged to 102.9 million shares on today's breakout, 14% above the 10-day average, providing strong confirmation for the price advance. The cumulative volume profile shows increasing participation during upside moves compared to down days over the past month, validating trend sustainability. Volume spikes accompanied each resistance break (July 16: 105M shares, July 23: 103M), demonstrating institutional conviction.
Relative Strength Index (RSI)
The 14-day RSI has climbed to approximately 68, nearing overbought territory (>70) but not yet triggering a technical warning. RSI progression has aligned with price action during this ascent. However, the 89% reading on the 7-day RSI suggests potential near-term exhaustion if momentum falters. The indicator bears monitoring for bearish divergence on any new highs.
Fibonacci Retracement
Applying Fibonacci levels to the dominant uptrend from the June 9 low of 9.53 to today's high of 13.39 reveals key support zones at 12.48 (23.6%), 11.92 (38.2%), and 11.46 (50%). The price has decisively cleared the 23.6% retracement level, which now becomes support. The shallow retracements during recent pullbacks signal robust underlying demand.
Confluence and Divergence Observations
Notable confluence exists between the volume-confirmed breakout, moving average alignment, and MACD bullishness. The Bollinger Band expansion further corroborates directional strength. However, the KDJ overbought reading diverges from this bullish consensus, warranting caution. Key resistance at 13.39 becomes critical – a decisive close above this level with sustained volume could trigger short-covering, while rejection may prompt profit-taking toward 12.85 support. The absence of bearish reversal candles currently favors continuation patterns.