Warner Bros Discovery Soars 29% On Record Volume As Technicals Flash Bullish Signals

Warner Bros. Discovery (WBD) has demonstrated extraordinary volatility in recent sessions, surging 28.95% to close at $16.17 on September 11, 2025, following a 2.28% gain the previous day. This two-day rally of 31.89% occurred on dramatically elevated volume (298 million shares), breaking decisively above previous consolidation patterns and warranting comprehensive technical evaluation.
Candlestick Theory
The September 11 session formed a massive bullish marubozu candle, closing near its high ($17.24 high vs. $16.17 close) after breaking through the $12.50 resistance zone. This pattern signifies overwhelming buying pressure. Prior to this, WBD established clear support near $11.50–$11.80 through multiple tests in August and early September. The current breakout suggests $17.24 as immediate resistance, with former resistance at $12.50 now becoming potential support.
Moving Average Theory
The 50-day MA ($12.24), 100-day MA ($11.02), and 200-day MA ($10.31) exhibit bullish alignment, with the 50-day crossing above both longer MAs in late August – a golden cross. The September 11 close ($16.17) sits 32% above the 200-day MA, confirming strong trend momentum. Short-term pullback support is anticipated near the 50-day MA ($12.24), which aligns with the September 10 low ($12.00).
MACD & KDJ Indicators
MACD (12,26,9) shows a strengthening bullish crossover, with the histogram expanding sharply on September 11 – the most significant upward momentum in the dataset. Meanwhile, the KDJ oscillator entered extreme overbought territory (%K=93, %D=88), historically preceding short-term consolidation. However, the MACD-KDJ divergence (MACD accelerating while KDJ nears ceiling) suggests potential near-term profit-taking rather than trend reversal.
Bollinger Bands
Prices breached the upper Bollinger Band ($14.20) on September 11 amid dramatic band expansion (bandwidth +47% vs. prior day), indicating volatility breakout. Historically, such extreme deviations (current close 2.3 standard deviations above 20-day SMA) precede consolidation. The breakout’s sustainability will depend on whether the stock maintains above the $15.50 upper band level, which now becomes initial support.
Volume-Price Relationship
September 11’s record volume (298M shares, 397% above 30-day average) validated the breakout, with volume expanding 398% as price surged – classic accumulation confirmation. The volume-weighted average price (VWAP) for the rally period sits at $12.85, providing a dynamic support benchmark. Any continuation rally requires volume persistence above the 100-day average (58M shares) to avoid exhaustion signals.
Relative Strength Index (RSI)
The 14-day RSI spiked to 83.5 – the highest reading in the dataset and deep into overbought territory. While concerning as a standalone signal, its occurrence alongside record volume and MACD strength warrants context. Historical parallels (e.g., July 2025’s RSI=78 peak) preceded 8–10% corrections rather than trend reversals. This suggests near-term consolidation is probable before further upside potential materializes.
Fibonacci Retracement
Applying Fib levels to the October 2024 low ($7.66) and September 2025 high ($17.24) reveals critical thresholds: 23.6% ($14.02), 38.2% ($13.20), and 50% ($12.45). These levels align with technical supports at the psychological $14.00 barrier and the 50-day MA ($12.24). The rally has cleared all key Fib levels, turning the 38.2% retracement ($13.20) into a major support confluence area.
Synthesis
Multiple indicators confirm the breakout’s technical validity: Moving average alignment signals a robust uptrend, volume confirms institutional participation, and Fibonacci clearance establishes new support zones. Critical confluence exists between the 50-day MA ($12.24) and 38.2% Fib retracement ($13.20), creating a high-probability support band. However, extreme readings in RSI (83.5), KDJ (overbought), and Bollinger deviation warrant caution for near-term consolidation. The September 11 high ($17.24) represents immediate resistance, with sustained trading above $15.50 needed to maintain bullish momentum. Should profit-taking emerge, the $13.20–$12.24 support zone would offer a critical test of trend resilience.