11 Communication Services Stocks: Pre-Market Tape & Technical Levels

The pre-market session set the tone for a volatile day across the communication services sector. The tape was dominated by a sharp rally in tech names, with stock index futures climbing on the back of strong bank earnings and a broad tech rally. That sentiment lifted the major gainers, led by Micron, which surged 5.43% to $354.90. The move was a direct beneficiary of the sector-wide momentum, with other mega-caps like NVIDIA and Tesla also showing solid pre-market strength.

On the other side of the ledger, the sector's high-risk, high-reward nature was on full display. Tryhard Holdings was the standout loser, plunging 15.5% to $6.42. This sharp reversal highlights the extreme volatility that can grip smaller, speculative names, where a single catalyst can trigger a violent pullback. Other notable decliners included Star Fashion Culture and iOThree, each falling over 10%.

The most specific catalyst came from the defense sector. AST SpaceMobile jumped 8% Friday morning after being awarded a prime contract on the U.S. Missile Defense Agency's SHIELD program. This is a tangible, near-term development that validates the company's technology and opens a new revenue pipeline. The award, publicly announced earlier in the week, gives AST SpaceMobile eligibility to compete for future task orders, providing a clear technical tailwind.

Other notable movers included a massive 58.5% pop for TNL Mediagene, a 5.77% gain for TJGC Group, and solid 5%+ moves for Teads Holding and TruGolf Holdings. The tape shows a market where broad sentiment and specific news are driving price action, setting up a clear technical battleground for the session ahead.

Technical Levels & Volume: The Real Story

The pre-market tape shows a sector caught between broad bullish momentum and specific, volatile catalysts. The setup is classic for a technical trader: a strong underlying trend is being tested by news-driven moves that require volume confirmation to hold.

The sector's broader advance in 2025 was anchored by mega-cap firms, suggesting the rally is still concentrated in a few large players. This concentration creates a technical bias; when the big names move, the index follows. Recent data supports that bullish sentiment, with risk appetite improving and the VIX remaining low. That low volatility environment favors momentum trades and makes the market more sensitive to any headline that could disrupt the calm.

Take AST SpaceMobile as the prime example. The stock jumped 8% Friday morning on a major defense contract win. For this to be a true breakout, the move needs to hold above recent support levels. A failure to do so could trigger a sharp pullback as the initial euphoria fades. The key technical signal here is volume. Sustained high volume on the move is needed to validate the contract news and show real buying conviction. Without it, the move risks being a short-lived spike.

On the flip side, the sector's vulnerability is clear. The same low VIX that supports a bullish bias also means the market has little room for error. It remains vulnerable to headline-driven volatility. The earlier plunge in names like Tryhard Holdings shows how quickly sentiment can shift, especially in smaller, speculative stocks. This creates a technical battleground where breakouts are sharp but reversals can be violent.

The bottom line is that price action is the only thing that matters. Watch for volume confirmation on ASTS's move to gauge if the breakout is real. For the sector as a whole, the trend is up, but the path is likely to be choppy, with the mega-caps dictating the direction and headlines providing the volatility.

Trading Implications: Targets & Risk Management

The pre-market tape has set up clear technical battlegrounds. For each stock, the path forward hinges on specific levels and volume confirmation. Let's break down the targets and risk management.

AST SpaceMobile (ASTS): The 8% pop on the defense contract is a classic momentum play. The key technical level is $115. A sustained break above that resistance would signal the breakout is real and could open the door to testing the next major hurdle near $125. The immediate support to watch is the pre-market close at $109.56. A close below $100 would be a clear bearish signal, indicating the contract news failed to attract sustained buying and the move is likely to reverse. Volume on the move is critical; low volume on the pop would raise red flags.

Tryhard Holdings (THH): The 15.5% plunge shows extreme seller pressure. The immediate technical focus is the bounce off the pre-market low of $6.42. A strong, volume-backed bounce off the $6.00 level would be needed to test if the decline is over and to suggest the worst may be priced in. Failure to hold above that $6 level, however, would signal the downtrend remains intact. This is a high-risk, high-volatility name where stop-losses are essential.

TNL Mediagene (TNMG): The 58.5% surge is an extreme move that often leads to consolidation. The stock is now trading at $3.74. The immediate technical task is to see if it can hold above recent support, likely around the $2.50 area. A pullback to test that level would be a normal profit-taking correction. A failure to find support there would signal the rally is exhausted. For now, the move is a momentum spike; watch for a period of consolidation to establish a new base.

The Broader Tape: Beyond individual names, monitor the S&P 500 Communication Services Sector for any divergence from the broader market's advance. The sector's 2025 outperformance was anchored by mega-caps, and that concentration remains a key risk. If the sector starts to lag the S&P 500, it could signal fading momentum in the big names that are driving the trend.

Macro Catalysts to Watch: The technical setups are being played out against a backdrop of low volatility, with the VIX remaining low. This environment is fragile. Key macro catalysts like the U.S. December Industrial Production data and any shifts in Fed policy expectations could quickly disrupt the calm. A single data point or policy shift could trigger a volatility spike, impacting all names, especially the more speculative ones like THH and TNMG. Keep an eye on the tape for any sudden volume spikes that could signal a macro-driven reversal.