Warner Bros Discovery Jumps 7.28% As Technicals Signal Bullish Momentum

Warner Bros Discovery (WBD) rose 7.28% in the most recent trading session (2025-06-16), closing at $10.76 with a trading range of $10.04–$10.795 on elevated volume of 46.7 million shares. This strong performance concludes a volatile period, setting the stage for comprehensive technical evaluation.
Candlestick Theory
The recent candlestick structure reveals key transitions. The session on 2025-06-12 formed a long bearish candle (-3.33%), followed by a smaller bearish candle on 2025-06-13 (-1.28%), indicating consolidation. The 2025-06-16 session printed a decisive bullish marubozu-like candle (7.28% gain), closing near the high after testing $10.04 support. This pattern suggests bullish conviction, with immediate resistance now at the $10.89–$11.10 zone (June 2025 highs) and critical support established at $10.04–$10.00 (June 16 low and psychological level).
Moving Average Theory
Price action confirms a bullish multi-timeframe trend structure. The current close ($10.76) sits comfortably above the 50-day, 100-day, and 200-day moving averages—estimated near $9.60, $9.20, and $8.80 respectively—indicating sustained upward momentum. The alignment of shorter-term MAs above longer-term benchmarks reinforces the bullish bias, though a pullback to test the 50-day MA ($9.60) could materialize after rapid appreciation.
MACD & KDJ Indicators
MACD (12,26,9) shows strengthening bullish momentum, with the histogram expanding positively as the fast line leads above the signal line after a recent crossover. Conversely, the KDJ oscillator (9,3,3) signals overbought conditions, with the %K line (approx. 93) diverging sharply above the %D line in overbought territory (>80). This juxtaposition suggests near-term consolidation pressure despite the dominant uptrend.
Bollinger Bands
Price trades near the upper Bollinger Band ($10.80, 20-day SMA basis), reflecting elevated near-term volatility and bullish momentum. Band expansion during the June advance confirms strong directional conviction. However, proximity to the upper band—coupled with overbought oscillators—increases susceptibility to a reversion toward the mid-band ($10.20).
Volume-Price Relationship
Volume analysis presents nuanced signals. The advance from the $9.11 low (2025-06-10) featured robust accumulation (71.4M shares, +5.04%), but the 2025-06-16 rally (46.7M shares, +7.28%) occurred on lower volume than the preceding downswing (58.7M shares on 2025-06-12). This divergence suggests sustainability concerns, requiring confirmation via follow-through volume on upward continuations.
Relative Strength Index (RSI)
The 14-day RSI has surged to approximately 78, entering overbought territory (>70). While reflecting strong upside momentum, this reading coincides with the KDJ’s overbought signal and historically precedes short-term consolidations. Traders should monitor for bearish divergences should price make new highs without RSI confirmation.
Fibonacci Retracement
Using the $9.11 low (2025-06-10) and $11.10 high (2025-06-09), key retracement levels materialize. The close at $10.76 breaches the 78.6% retracement ($10.68), indicating robust recovery momentum. This opens a path toward the 100% extension at $11.10, though the 78.6% level may now act as support. A failure to hold above $10.68 could trigger a retreat toward the 61.8% level ($10.34).
Confluence and Divergence
Confluence occurs in the bullish MACD, moving average alignment, and Fibonacci breakout, supporting continued upward potential. However, critical divergences exist: overbought KDJ/RSI readings conflict with the Bollinger Band extension, while lagging volume on the latest advance questions its durability. These suggest a high probability of near-term consolidation or pullback before resuming the broader uptrend.