Warner Bros Discovery Jumps 3.95% As Technicals Signal Bullish Continuation Above Key $18.87 Resistance

Warner Bros Discovery (WBD) closed at $18.70 on September 18, 2025, marking a 3.95% single-day gain, positioning the stock for critical technical evaluation across multiple methodologies.
Candlestick Theory
The recent rally from September 11–12 formed a robust bullish gap (16.17 to 18.87) on explosive volume, establishing $18.87 as immediate resistance. September 18’s bullish engulfing pattern, closing near the session high ($18.70), signals potential continuation after two days of minor consolidation. Key support converges at $17.58 (intraday low from September 18) and the psychologically significant $17.00 level, while resistance remains at the September 12 peak of $18.87.
Moving Average Theory
A decisive Golden Cross materialized in late August, with the 50-day MA ($12.60) surging above the 100-day ($12.30) and 200-day ($11.80) MAs. The current price ($18.70) trades 48% above the 200-day MA, confirming a dominant uptrend. The positively aligned MAs (50 > 100 > 200) underscore sustained bullish momentum, with the 50-day MA now acting as primary support in pullbacks.
MACD & KDJ Indicators
The MACD (12,26,9) remains bullish but shows waning momentum, with the histogram narrowing during consolidation near $18.00. The KDJ (9,3,3) oscillators reflect overbought conditions, with the J-line briefly exceeding 90 on September 12 before retreating to 80. While this divergence suggests short-term exhaustion, persistently elevated K/D values (K: 75, D: 72) indicate underlying strength. A bearish MACD crossover or KDJ dip below 70 would signal caution.
Bollinger Bands
A pronounced band expansion occurred during the September 11–12 breakout, with volatility surging to extremes (+2σ near $19.00). Recent contraction sees the price hugging the upper band ($18.90), reinforcing $18.87 as tactical resistance. Support coincides with the 20-day SMA ($15.50) near the middle band. A sustained close above $18.90 may trigger renewed expansion targeting $20.00.
Volume-Price Relationship
The rally’s legitimacy is validated by record volume—298 million shares on September 11 and 286 million on September 12—exceeding average volumes by 400%. Subsequent pullbacks occurred on declining volume, underscoring limited distribution. The September 18 rebound (51 million shares) outpaced the prior session’s volume, suggesting accumulation at support. Volume divergence is absent, affirming bullish conviction.
Relative Strength Index (RSI)
The 14-day RSI peaked at 85 on September 11, entering extreme overbought territory (>70) before settling at 77. While this warns of overheating, the RSI’s failure to breach 70 during minor pullbacks (September 16–17) signals persistent demand. Historically, RSI >80 has preceded 5–8% corrections in WBD; however, strong trends may sustain elevated readings.
Fibonacci Retracement
Drawing Fib levels between the swing low ($12.54, September 10) and swing high ($18.87, September 12) reveals critical thresholds. The shallow retreat to $17.58 (4.2% pullback) held above the 23.6% retracement ($16.70), indicating robust demand. Key confluent support lies at $16.01 (38.2% retracement) and the psychological $16.00 level. A breach below $16.01 would expose $15.32 (50% retracement).
Confluence and Divergence
Confluence appears at $17.60–$17.80, aligning September 18’s intraday low, the 10% pullback level from the $18.87 peak, and Bollinger midline support. This reinforces its significance as a near-term floor. However, the RSI’s lower high on September 12 versus the price peak reflects bearish divergence, preceding the minor retracement. MACD momentum also lags recent highs despite price resilience.
In summary, Warner Bros Discovery exhibits a structurally bullish posture, underpinned by moving averages, volume confirmation, and Fib support clustering. While overbought oscillators and minor divergences advocate for near-term consolidation, the dominant trend remains upward. A decisive close above $18.87 opens the path toward $20.00, whereas failure to hold $17.50 may trigger a retest of $16.00–$16.50.