Warner Bros Discovery Jumps 5.04% On High Volume Breaking Key 10 Dollar Level

Warner Bros Discovery (WBD) advanced 5.04% in the most recent trading session, closing at $10.01 on substantial volume of 71.4 million shares, breaking above the psychologically significant $10 level after recent consolidation.
Candlestick Theory
The price action reveals a key bullish reversal pattern near the $9.11-$9.55 support zone (June 2025 lows). The latest session formed a robust bullish candle closing near its high ($10.01) after testing the low of $9.11, creating a long lower wick that signals rejection of lower prices. This follows a bearish session on June 9th that established resistance near $11.10. The swing low at $7.69 (April 2025) serves as major long-term support, while the $12.49 peak (December 2024) marks the primary resistance reference.
Moving Average Theory
Calculated 50-day, 100-day, and 200-day moving averages exhibit a developing bullish structure. The 50-day MA ($10.15) is poised to cross above the 100-day MA ($9.80), signaling improving medium-term momentum. Price is currently testing the 50-day MA resistance. The long-term 200-day MA ($8.90) provided strong support during the June volatility, with multiple bounces near this level reinforcing its significance. The ascending 200-day MA suggests the broader trend may be transitioning from bearish to neutral.
MACD & KDJ Indicators
MACD shows bullish convergence, with histogram bars rising despite the June pullback, indicating waning downward momentum. The signal line is flattening near the zero line, suggesting potential bullish crossover. KDJ reflects this improvement: The %K line (34.5) has crossed above %D (30.1) from oversold territory (<30 on June 9th). While not yet overbought (KDJ <70), this upward inflection implies strengthening short-term momentum. Convergence between MACD and KDJ reinforces the positive momentum shift.
Bollinger Bands
Bands contracted significantly (20% width vs. 40% during April volatility), indicating a period of suppressed volatility preceding the recent breakout. Price closed above the 20-period midline ($9.60), confirming a shift from lower to middle band range – typically a bullish transition. Band expansion is beginning to emerge during the upside move, supporting the momentum thesis. The upper band ($10.80) becomes the next technical resistance.
Volume-Price Relationship
Volume analysis strongly validates the breakout. The June 9th decline occurred on the highest volume in the dataset (155M shares), potentially marking a capitulation event. Subsequent pullbacks showed notably lower volume, while yesterday's 5.04% advance erupted on 71.4M shares – the highest volume in over two weeks. This expanding volume on rallies versus contracting volume on declines signals accumulation. Key resistance breaks (e.g., $9.53 June swing high) were confirmed by above-average volume, increasing their technical significance.
Relative Strength Index (RSI)
The 14-day RSI (42.1) is rising from near-oversold levels (30.5 on June 9th) but remains neutral, suggesting room for further upside before overbought concern. Crucially, the June price low ($9.11) occurred with a higher RSI low versus the May bottom ($7.69), forming a bullish divergence. However, the RSI hasn't yet crossed above 50, warranting some caution until it confirms strengthening momentum. Its position allows for continued recovery before reaching the overbought threshold (70).
Fibonacci Retracement
Applying Fib levels between the Dec 2024 peak ($12.49) and Jun 2025 trough ($7.69) reveals key technical thresholds. The recent bounce aligns precisely with the 38.2% retracement level ($9.45), which acted as support. The next significant resistance coincides with the 50% retracement at $10.09 – aligning perfectly with both the psychological $10 barrier and the 50-day MA ($10.15). Above this, the 61.8% Fib level at $10.73 coincides with the 100-day MA ($10.70) and the March 2025 swing high, creating a major confluence zone. The $9.45-$10.09 zone becomes critical as price consolidates near these technically reinforced levels.
Confluence & Divergence
Significant confluence supports the current rebound: The $9.45-$9.55 zone combines the 38.2% Fib retracement, 200-day MA support, high-volume rejection candle, and oversold KDJ reading. No major bearish divergences are evident currently. MACD, KDJ, and RSI exhibit synchronized improvement off the June lows, while volume confirms bullish price action. However, the proximity to the 50% Fib / 50-day MA resistance cluster at $10.09-$10.15 remains a near-term hurdle needing decisive volume confirmation to overcome. Failure here risks consolidation between $9.50 and $10.15.