NWS Plunges 2.8% Amid Sector-Wide Jitters: What's Fueling the Selloff?

Summary
• NWS trades at $30.91, down 2.83% from $31.81
• Sector leader Disney (DIS) declines 0.035%
• RSI at 41.7 suggests oversold territory
• MACD (-0.26) and bearish histogram (-0.17) confirm downward momentum

News B (NWS) has plunged to a 52-week low of $26.25, trading 2.83% below its previous close amid a broader selloff in the Media sector. The stock’s sharp decline has outpaced its sector leader Disney (DIS), which edged lower by 0.035%. Technical indicators signal a short-term bearish bias, with RSI in oversold territory and MACD diverging from price action. The move raises questions about catalysts—whether sector-wide pressures or company-specific risks—amid a volatile trading session.

Bearish Momentum Unleashed by Technical Divergence
The 2.83% intraday drop in NWS reflects a confluence of technical exhaustion and bearish momentum. The stock has pierced its 30-day moving average (33.29) and is now trading below the 200-day line (32.31), signaling a breakdown in long-term support. MACD (-0.26) has crossed below its signal line (-0.09), while the histogram (-0.17) shows accelerating bearish momentum. RSI at 41.7 indicates oversold conditions, but the lack of a bounce suggests sellers are in control. Bollinger Bands confirm the bearish bias, with NWS trading near its lower band ($31.27) and failing to reclaim the middle band ($33.05). This technical divergence points to a short-term continuation of the downtrend.

Options Playbook: Capitalizing on NWS’s Bearish Bias
• 200-day average: 32.31 (below current price)
• RSI: 41.7 (oversold)
• MACD: -0.26 (bearish)
• Bollinger Bands: 31.27 (lower), 33.05 (middle), 34.83 (upper)

NWS’s technical profile favors a short-term bearish bias, with key support levels at $32.25 (30D) and $32.84 (200D). The stock’s 52-week range (26.25–35.58) suggests a potential rebound toward $31.27 (lower Bollinger Band) but lacks conviction to retest the 30-day MA. For options traders, the NWS20251121C30 call option stands out: it offers a 15.52% leverage ratio, 33.21% implied volatility, and a delta of 0.633, making it sensitive to price swings. With a theta of -0.028 and gamma of 0.103, this contract benefits from time decay and price acceleration. A 5% downside scenario (to $29.36) would yield a call payoff of $0.64 (max(0, 29.36 - 30)).

NWS20251121C35 (strike $35) offers a 59.38% leverage ratio and 40.29% IV, ideal for aggressive bearish bets. Its delta (0.219) and gamma (0.066) suggest it gains value as NWS approaches $35. A 5% drop would result in a put payoff of $5.65 (max(0, 35 - 29.36)).

Action: Aggressive short-sellers may target NWS20251121C30 into a breakdown below $31.27. Conservative traders should watch for a rejection at $30.87 (intraday low) before initiating.

Backtest News B Stock Performance
Below is the event-study back-test for “-3 % or worse intraday plunge” in News Corp Class B (NWS.O) from 1 Jan 2022 to 7 Oct 2025. Key take-aways:• 31 such plunges occurred during the sample. • Over the subsequent 30 trading days the stock, on average, failed to produce a statistically significant rebound relative to a simple buy-and-hold benchmark. • The median path is essentially flat, with a slight negative drift after the first week; win-rates hover near 50 %. • Thus, buying NWS.O immediately after a ≥ 3 % down-day has not been a robust edge in this period.You can inspect full cumulative-return curves, win-rate by holding window, and event-level distribution in the interactive panel.Feel free to drill down into individual events or request alternative thresholds/holding rules if you’d like deeper insight.

NWS at Crossroads: Break Below $31.27 Could Trigger Fresh Selloff
NWS’s 2.83% drop has exposed a fragile technical structure, with key support levels at $31.27 and $30.87. A breakdown below $31.27 would validate a bearish continuation toward $29.36, aligning with RSI’s oversold reading and MACD divergence. Sector leader Disney (DIS) remains a barometer—its -0.035% decline suggests broader market caution. Traders should prioritize NWS20251121C30 for short-term bearish exposure, while watching for a rejection at $30.87 to signal a potential rebound. Act now: Short-sellers target $31.27; bulls await a $32.84 retest.