Warner Bros Discovery Rises 7.45% Over Two Sessions As Technicals Signal Bullish Momentum

Warner Bros Discovery (WBD) gained 3.37% to close at $19.33 in the latest session, marking its second consecutive day of gains with a 7.45% advance over this period. This rally follows heightened volatility, including a 28.95% surge on September 11th and a subsequent 16.70% jump on September 12th, before consolidation around the $18–$19 range. The analysis below integrates technical indicators to evaluate momentum, trend sustainability, and key levels.
Candlestick Theory
Recent candlestick patterns reveal a short-term bullish structure. The stock formed a hammer pattern at $17.58 on September 18th (signaling rejection of lower prices) before two consecutive white candles closed near session highs, confirming buying pressure. Key resistance is anchored at $19.49–$19.60 (September 15th and 19th highs), while support rests at $17.57–$17.58 (September 17th–18th lows). A decisive close above $19.60 would invalidate the double-top pattern formed earlier this month.
Moving Average Theory
The moving average configuration reflects robust bullish momentum. The 50-day SMA ($14.20), 100-day SMA ($11.80), and 200-day SMA ($10.25) are aligned in ascending order, confirming a long-term uptrend. The current price trades 36% above the 200-day SMA, signaling strong bullish traction. Notably, the 50-day SMA crossed above the 200-day SMA in Q1 2025 (a "Golden Cross"), historically preceding accelerated gains. Pullbacks toward the 50-day SMA may attract institutional demand.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover in positive territory, with the histogram expanding upward—consistent with accelerating momentum. KDJ readings (14-period) are elevated but not overbought: K-line at 75 and D-line at 68. While MACD strength supports continuation, KDJ’s approach toward overbought territory suggests potential near-term consolidation. Divergence emerged on September 16th–17th when price lows dipped while KDJ formed higher lows, foreshadowing the current rebound.
Bollinger Bands
Bollinger Bands (20-day SMA, σ=2) expanded sharply during the mid-September volatility surge (bandwidth up 48%), reflecting elevated uncertainty. Recent consolidation narrowed bandwidth by 15%, indicating decreasing volatility and setting the stage for a directional move. Price currently rides the upper band ($19.10), typically unsustainable beyond 1-2 sessions without pullbacks. A close above $19.50 would trigger an "expansion breakout," potentially extending gains.
Volume-Price Relationship
Volume dynamics validate bullish momentum. The September 12th rally to $18.87 occurred on 286M shares—the highest volume in 2025—confirming institutional participation. Recent gains on September 18th–19th coincided with volume 42% above the 30-day average, underscoring conviction. However, the September 16th sell-off on 85M shares (vs. prior day’s 106M) lacked proportional volume, suggesting limited bearish follow-through.
Relative Strength Index (RSI)
The 14-day RSI (61.5) resides in neutral territory, retreating from an overbought peak (78) on September 12th. While not overextended, RSI’s failure to breach 70 during the latest rally signals tempered buying urgency. Historical instances of RSI >75 (e.g., July 24th, September 12th) preceded 5–7% pullbacks, warranting caution near current resistance.
Fibonacci Retracement
Applying Fibonacci to the swing low of $12.00 (September 10th) and high of $19.60 (September 15th):
- 23.6% retracement: $17.80 (successfully tested September 18th)
- 38.2% retracement: $16.70
The shallow 23.6% rebound aligns with robust underlying demand. Confluence exists at $17.80 (Fibonacci support + swing low) and $19.60 (psychological resistance + all-time high). A sustained break above $19.60 projects an extension toward $22.50 (127.2% Fibonacci extension).
Confluence and Divergence
Confluence supports bullish bias:
- Volume-backed breakout above the 23.6% Fibonacci level
- MACD/KDJ momentum alignment
- Golden Cross reaffirming long-term trend
Key divergence emerged mid-September when RSI diverged negatively from price (higher high vs. lower RSI peak), triggering consolidation. No material divergences currently exist, though RSI’s neutral reading amidst the push toward resistance warrants monitoring for exhaustion signals.
Conclusion: Warner Bros exhibits technical strength with bullish momentum, validated volume, and supportive moving averages. Near-term resistance at $19.49–$19.60 remains pivotal—a breach could accelerate gains toward $22.50. However, overbought oscillators (KDJ/MACD) and narrowing Bollinger Bands suggest consolidation risks. Traders should monitor $17.58–$17.80 support for structural integrity; a breakdown below $17.58 would signal a deeper correction toward $16.70.