Warner Bros Discovery Stock Jumps 3.54% On Bullish Technical Signals

Warner Bros Discovery (WBD) shares closed at $11.41, gaining 3.54% in the most recent session on robust volume of 73.4 million shares. This upward movement warrants examination through multiple technical lenses to gauge potential future direction and key levels.
Candlestick Theory
Recent price action shows a potential short-term bullish reversal pattern. The July 1st session printed a long red candle with exceptionally high volume ($961M), suggesting capitulation near $10.78. This was followed by three successive green candles, culminating in the current bullish close. Immediate resistance is evident near $11.42 (today's high/July 3rd high), while support is established at $11.04 (today's low). A decisive break above $11.50 would confirm bullish conviction and target June's swing high near $11.72.
Moving Average Theory
The 50-day MA (approximately $10.40) has crossed above the 200-day MA (~$9.90), forming a long-term bullish Golden Cross. However, the current price ($11.41) remains below the 200-day SMA ($11.60 calculated from the dataset), creating a critical resistance zone. The 100-day MA near $10.20 provides underlying support. While the MA alignment favors a gradual bullish trend transition, overcoming the 200-day barrier is paramount for sustained upside.
MACD & KDJ Indicators
MACD shows a bullish crossover occurring below the zero line in recent sessions, signaling growing upward momentum. The KDJ indicator dipped into oversold territory (K/D < 20) in late June before rebounding, with K (59) and D (52) currently trending upwards without being overbought. Both oscillators align in suggesting building bullish momentum with room for further price appreciation before overbought conditions materialize.
Bollinger Bands
Bands contracted notably in late June, indicating reduced volatility and potential energy accumulation. The July upswing saw price surge from the lower band towards the upper band ($11.80 estimated), with band width expanding – signaling renewed volatility favoring bulls. Price closing near the upper band suggests near-term upside potential, but a break above it would require substantial volume confirmation to avoid a potential pullback.
Volume-Price Relationship
Bullish volume confirmation is evident in key up days: July 8th (73.4M shares), July 2nd (48.6M), and the June 16th breakout (46.7M). Conversely, the significant July 1st sell-off (88M shares) on a large red candle may mark capitulation. Sustained high volume on advancing sessions strengthens the case for the recent recovery's sustainability. Resistance breaks will require volume exceeding the July 1st peak for validation.
Relative Strength Index (RSI)
RSI (currently ~54) has climbed steadily from oversold levels below 30 in mid-June but remains comfortably below the overbought threshold (70). This indicates recovering momentum without immediate exhaustion warnings. The slope is more significant than the absolute level currently, favoring continued upside potential before reaching technical overbought territory. A push above 60 would strengthen the bullish momentum signal.
Fibonacci Retracement
Applying Fibonacci levels to the rally from the 2024 low (~$6.64) to the 2025 high ($11.72) reveals key support levels. The 38.2% retracement ($9.50) held firmly during the June pullback (low: $9.53). This established $9.50 as major support. The 23.6% level ($10.60) now acts as near-term support, while a break above the prior high ($11.72) opens upside towards the 127.2% extension near $13.00. The respected $9.50 level adds confluence to the broader bullish structure.
Conclusion
Multiple indicators suggest a strengthening bullish bias for Warner Bros Discovery. The Golden Cross, MACD crossover, KDJ rebound, volume confirmation, and Fibonacci support near $9.50 create notable confluence. The primary technical hurdle is overcoming the 200-day SMA resistance near $11.60. A sustained break above this level, particularly on volume exceeding 80M shares, would strongly signal continuation towards $11.72 and potentially higher. Near-term support is $11.04/$10.60, with the $9.50 level serving as a crucial long-term floor. Traders should monitor the RSI for potential overbought conditions if the advance accelerates.