Paramount Skydance Jumps 5.85% to 18.92 on Heavy Volume Surge

Paramount Skydance (PSKY) rose 5.85% to close at 18.92 in the most recent session, achieving an intraday high of 19.23 and low of 17.70, accompanied by heightened trading volume of 21.7 million shares. This marks a strong recovery from the prior session's consolidation, positioning the stock near recent highs despite volatile price action over the past month.
Candlestick Theory
The recent price action reveals a noteworthy pattern confluence. The 2025-09-16 session (-5.65%) formed a long bearish candle, testing support near 17.45. This was followed by a hammer-like candle on 2025-09-17 (2.22% gain), signaling rejection of lower prices, and culminated in a robust bullish engulfing candle on 2025-09-19 that reclaimed the 18.50–18.92 resistance zone. Key support now lies at 17.45–17.70, while resistance is evident at 19.23–19.05 (September highs).
Moving Average Theory
Using adjusted periods (10-day and 20-day) due to limited data span, the 10-day MA (17.26) has crossed above the 20-day MA (16.19), confirming a short-term bullish bias. Price trading consistently above both averages since September 11 reinforces upside momentum. The steep slope of the 10-day MA reflects accelerating near-term strength, though the lack of longer-term averages (e.g., 200-day) limits trend context.
MACD & KDJ Indicators
MACD calculations show sustained positive momentum, with the MACD line (12-26 EMA spread) accelerating above its signal line post-September 11 breakout. KDJ readings, however, signal caution: J-line (derived from RSV) exceeds 94, reflecting extreme overbought conditions within the 9-day window. While this divergence doesn't invalidate the trend, it suggests near-term exhaustion risk, particularly after the 35% rally from August lows.
Bollinger Bands
Bands are expanding sharply (20-day σ ≈ 1.78), reflecting heightened volatility after prolonged consolidation. Price closed near the upper band (≈19.19), indicating aggressive bullish momentum. However, the wide bandwidth and recent touch of the lower band (17.45 on September 16) imply persistent two-way volatility. A close above 19.23 would likely trigger further band expansion.
Volume-Price Relationship
The 5.85% surge on September 19 occurred on 21.7M volume—the highest since September 12’s breakout—validating buyer conviction. Volume consistently expanded on up days (September 11-12, 19) and contracted during pullbacks, confirming accumulation. The August 13 record volume spike (133.7M shares) during the +36.74% surge remains a key anchor point, with current volume profiles supporting trend sustainability above 18.00.
Relative Strength Index (RSI)
The 14-day RSI reads ≈76, crossing into overbought territory (>70). This aligns with the KDJ’s overbought signal and the vertical 27% climb since September 11. Historically, similar RSI peaks preceded consolidations (e.g., mid-August pullback after RSI > 80). While not immediately bearish, this warns against chasing extensions near 19.23 resistance.
Fibonacci Retracement
Applying Fib levels between the swing low of 13.99 (September 11) and high of 19.23 (September 19), key retracement supports emerge at 17.23 (38.2%) and 16.61 (50%). The recent bounce off 17.45 aligned closely with the 38.2% level, reinforcing its technical significance. Confluence exists between this zone, the 20-day MA (16.19), and the August 26 high (15.84), creating a robust support floor below 17.00. Upside targets project to 21.14 (127.2% extension) if 19.23 is breached.
Confluence and Divergence
Confluence appears strongest in the 17.45–17.70 support region, validated by Fibonacci levels, candlestick rejection signals, and the 20-day MA. A key divergence exists between momentum oscillators (RSI/KDJ flashing overbought) and sustained price strength with confirming volume—suggesting near-term consolidation may precede further upside. The MACD’s consistent bullish alignment tempers immediate reversal concerns. Traders should monitor whether the stock holds above the 10-day MA (17.26) to maintain bullish structure.