Warner Bros. Discovery, Inc. (WBD) Technical Analysis

Price Action Analysis

Overview:

• The recent price action shows a constructive uptrend in the immediate term, with the pace accelerating into December and the price persisting above prior ranges.
• The daily structure has produced higher highs and higher lows in the past several weeks, moving from the low-to-mid-20s toward the high-20s to around the $28–$30 area.
• The weekly chart reinforces a longer-term uptrend, with pullbacks generally shallow and buying interest returning during risk-on periods.

Key observations from the attached charts:

• Uptrend with periodic shallow pullbacks: The price has traded in a rising channel over the last few weeks, testing support levels around the higher-20s and bouncing back toward the upper end of the range.
• Immediate support and supply zones:
  • Near-term support sits around the low-to-mid $26s, with the price repeatedly testing these levels during pullbacks and then reversing higher.
  • Immediate resistance sits near the $30 level, which has acted as a ceiling in recent sessions.
• Candlestick perspective: Bullish candles dominate in the most recent period with several close-to-close increases, indicating buyer control on a daily basis. Occasional short redraws on downside days suggest occasional profit-taking, but buyers re-emerge quickly.
• Volume behavior (visual read from the chart): Volume tends to increase on up days, particularly when price advances through resistance bands, signaling accumulation and participation by buyers. There are notable volume spikes on days with stronger price advances and when price approaches the $30 level, underscoring the significance of that zone.

Trend context:

• Short-to-mid-term trend: Uptrend with momentum positive, price trading well above nearby levels of prior consolidation.
• Long-term trend (weekly): Upward trajectory remains intact, with no clear failure of structure visible in the weekly chart.

Technical Indicators

Technical Indicators Summary

Indicator	Current Value	Interpretation / Implication
50-day Moving Average	$23.20	Price is comfortably above the 50-day MA, signaling a bullish short-to-medium-term trend. The gap suggests room for further upside before potential MA-based pullbacks.
RSI (14)	72.22	Bullish momentum is strong but cautiously high; indicates potential overbought risk if momentum accelerates further, though no immediate overbought warning at current level.
MACD (12,26,9)	MACD ~ 1.70; Signal ~ 1.70; Histogram ~ 0.0	Momentum approaching a neutral-to-bullish cross; recent movement has been constructive, but near-term momentum could drift around the zero line unless price action strengthens.

Notes:

• The price is trading above the 50-day MA by a meaningful margin, which supports the continuation of the uptrend.
• RSI at ~72 indicates solid upside momentum but watch for a pause or mild pullback if it edges higher toward the 75–80 area.
• MACD currently shows a balanced reading near the signal line; a sustained MACD bullish divergence or a fresh breakout above resistance would strengthen the bullish tilt.

Volume & Momentum Analysis

• Volume on up days has tended to rise when price makes progress toward the $30 resistance zone, suggesting accumulation and confirmation of the move.
• Periods of consolidation are generally accompanied by lighter volume, with occasional spikes during breakouts, reinforcing the idea that buyers are stepping in as price tests key levels.
• The combination of rising prices with expanding volume on advances points to a constructive accumulation phase rather than distribution, favoring continuation if price can clear the next resistance hurdle.

Trendlines and key reference levels (visual aids, notations):

• A horizontal support line around approximately $26.50 has acted as a base in recent pullbacks and aligns with prior swing lows.
• A horizontal resistance line around $30.00 marks a significant macro obstacle, with price testing this area multiple times.
• An intermediate resistance line around $29.25 has also provided a touchpoint during the latest range run.
• These levels were drawn to reflect ongoing price boundaries and are intended to guide near-term decision-making.

Trendline drawing notes:

• Support line at 26.50 projected forward; resistance lines at 29.25 and 30.00 extended with a horizon of at least 90 days to anticipate potential future moves.

Current price context (from quote):

• Current price: $27.77

Key Buy/Sell Levels

Buy-level zones (with touch status and distance from current price)

• Zone A: 26.50 – 27.50 (near-term support / potential pullback buy area)

  • Has this level been touched? Yes (near-term), price is currently within this vicinity.
  • Distance from current price: n/a here since it is a nearby reference; if price were to pull back to 27.50, it would be about $0.27 below current level, roughly 1% drop.

• Zone B: 25.75 – 26.75 (deeper pullback potential)

  • Has this level been touched? No (recent dips have not closed within this exact band)
  • Distance from current price: 27.77 − 26.75 = 1.02 dollars; approx. 3.7% lower than current price.

• Zone C: 30.00 – 30.50 (near-term resistance breakout target)

  • Has this level been touched? Not yet on the current swing
  • Distance from current price: 30.00 − 27.77 = 2.23 dollars (≈ 8.0% higher), up to 30.50 (≈ 2.73 dollars, ≈ 9.8% higher)

Rationale:

• Zone A is a logical near-term anchor and could provide a base for continuation if the price tests this area again.
• Zone B represents a more meaningful pullback zone, offering a potential entry point if price faces a shallow correction while the bullish trend remains intact.
• Zone C marks the primary near-term hurdle. A sustained close above this resistance with volume would imply a higher-probability move to the next objective region.

Notes on relation to other references:

• The near-term buy zone aligns with the area where price previously found support and where minor consolidation occurred, and it sits above the 50-day moving average, which provides a bullish structural anchor.
• The $30 level coincides with a well-established resistance zone on the charts; a breakout above with renewed volume would likely target additional upside beyond this level, potentially toward the upper-30s.

Trendline-based context:

• The support level around 26.50 and resistance near 30.00–30.50 are consistent with the drawn trendlines and recent price interactions. A successful test of 30.00 with solid volume could elevate the probability of continuation beyond the current range.

Technical Outlook & Summary

• Price Action Context:

  • The current trajectory is bullish with a well-defined uptrend in the near term. The price is comfortably above the 50-day moving average, indicating internal strength. A potential consolidation or minor pullback toward the 26.50–27.50 area would still keep the primary uptrend intact if buyers re-engage.

• Volume Signals:

  • Accumulation-like behavior on up-moves is suggested by higher volume on advances and volume clusters around resistance key levels. This supports the idea that the breakout from current ranges could be funded by genuine demand rather than mere short-covering.

• Technical Signals:

  • Positive bias supported by price above key moving averages.
  • RSI shows robust momentum but approaching stretched territory, so a shallow pullback could be healthy to reset RSI.
  • MACD is near a bullish momentum threshold; confirmation would come with a sustained MACD above the signal line on a daily close with increasing price.

• Buy/Sell Implications:

  • Near-term bullish bias remains, with a favorable setup as long as price remains above the 26.50 support and above 27–28 on a closing basis.
  • A breakout above 30.00–30.50 with convincing volume would tilt the outlook toward a higher-probability test of the next resistance bands, potentially into the mid- to upper-30s.

• Key Takeaway:

  • The chart structure supports a continuation scenario, provided price can clear the 30.00 resistance with sustained volume. The most actionable near-term buy zones are around 26.50–27.50, with an upside potential bias toward 30.00 and beyond if the breakout is confirmed.

If you’d like, I can monitor intraday moves and update the buy zones and trendline implications as new price data comes in.