Warner Bros Discovery Jumps 10.28% In Two Days As Technicals Turn Bullish

Warner Bros Discovery (WBD) has demonstrated notable bullish momentum in its most recent sessions, rising 5.00% to $10.51 on June 11, 2025, marking a two-day gain of 10.28%. This surge follows heightened volatility, including a 20.42% spike on April 9 and a 15.43% rally on December 12, 2024, juxtaposed against steep declines like the 13.26% drop on April 3. Technical indicators now collectively signal strengthening momentum after recovering from a June 10 low of $9.11.
Candlestick Theory
Recent sessions exhibit a robust reversal pattern. The June 9 bearish candle (high: $11.10, close: $9.53) formed a long upper wick, indicating rejection near yearly resistance. This was followed by a bullish engulfing pattern on June 10 (low: $9.11, close: $10.01), reinforced by a second white candle on June 11. Key resistance converges at $10.83–$11.10, aligning with the April 2025 peak. Support solidifies at $9.53 (June 9 close) and $9.11 (June 10 low), validated by accumulation near these levels.
Moving Average Theory
The 50-day moving average (MA) has crossed bullishly above the 100-day MA, with both trending upward. The June 11 close ($10.51) holds firmly above the 50-day ($9.80), 100-day ($9.35), and 200-day ($8.90) MAs—confirmation of a multi-timeframe uptrend. Golden cross formations between shorter-term MAs further validate bullish momentum, though the 200-day MA slope remains neutral, warranting monitoring for acceleration.
MACD & KDJ Indicators
MACD shows a bullish crossover as the signal line converges with the histogram, reflecting accelerating upward momentum. The KDJ oscillator’s %K (82) and %D (75) signal overbought territory, consistent with the 10.28% two-day surge. While this suggests near-term consolidation risk, strong volume support (71.4M and 52.1M shares on June 10–11) tempers reversal concerns. Divergence is absent, with both oscillators aligned in their upward trajectory.
Bollinger Bands
Volatility expansion is evident as bands widen following the June 9–11 price swings. The close near the upper band ($10.75) on June 11 highlights bullish pressure. Although this positioning hints at overextension, band expansion typically precedes sustained trends. The mid-band ($9.90) now acts as dynamic support, with a close below this level needed to invalidate the bullish bias.
Volume-Price Relationship
Volume surges validate key moves: The June 9 sell-off (155.1M shares) signaled capitulation, while the subsequent rebound attracted 71.4M and 52.1M shares—the highest upside volume since early April. This distribution-to-accumulation shift confirms buyer conviction. The volume-weighted average price (VWAP) for June 10–11 sits at $9.95, serving as a pullback support zone.
Relative Strength Index (RSI)
The 14-day RSI (64) approaches overbought territory but remains below the 70 threshold. Current readings suggest momentum strength rather than exhaustion, supported by the RSI’s rebound from near-oversold (35) on June 10. However, traders should note that RSI values above 70 would heighten near-term correction probability, particularly if volume recedes.
Fibonacci Retracement
Applying Fibonacci to the April 9 peak ($12.49) and June 10 low ($9.11), key retracement levels emerge: 38.2% ($10.39) and 61.8% ($11.23). The June 11 close near $10.51 breaches the 23.6% level ($9.98), targeting $10.39 next. Confluence exists at $11.00–$11.23, where the 61.8% Fib aligns with the March 2025 consolidation zone. A break above $11.23 would open path toward $12.50 resistance.
Concluding Synthesis
Warner Bros exhibits a bullish technical structure underpinned by MA alignments, MACD crossover, and volume-backed candlestick reversals. Confluence at $10.83–$11.10 (April high + Fib resistance) presents the immediate test. Divergence is minimal, though RSI and Bollinger Bands flag near-term overextension risks. Downside is cushioned at $9.95 (VWAP) and $9.11 (swing low). Probabilistically, upward momentum may persist if $10.39 Fib support holds, but a rejection at $11.10 could trigger consolidation. Volume trends remain critical for sustainability.