Step-by-Step Exhaustive Technical Analysis for Warner Bros. Discovery, Inc. (WBD)

1. Price Trend & Context

• Last Close: $10.01 (2025-06-10 20:00, recent)
• Recent Range: Intraday highs hit $10.12; lows at $9.11 (on a tumultuous recent day), but most price action today between $9.70 and $10.06.
• Volatility Spike: June 9-10 showed massive volume (over 150M on June 9, then over 71M intraday June 10), pointing to large institutional activity or news-driven moves.

2. Volume and Liquidity Analysis

• Volume Spike (June 9, 155M): Huge compared to historical averages. Typically, WBD saw 30-50M daily; this indicates a possible capitulation, institutional rebalancing, or reaction to a news event.
• After the spike: Volume pulls back, but remains elevated, suggesting continued interest and volatility.

3. Support and Resistance Mapping

• Nearest Support: $9.60 (recent intraday support, post-gap down from $10+)
• Critical Support: $9.00-$9.12 area—major swing low and heavy volume traded around these levels in May-June.
• First Resistance: $10.12-$10.19 (today's highs and partially filled gap from June 9 drop).
• Major Resistance: $10.60-$11.00 (unfilled gap-down area, former support in early June and late May).

4. Candlestick/Pricing Structure Patterns

• June 9: Monster gap down from $10.62 open to $9.53 close, then heavy consolidation around $9.60-$9.80.
• June 10: Attempts to recover, breaks through $9.80, then makes a higher high above $10.00, but pulls back towards $10.01 into the close. This closure forms a short-term bullish engulfing of the earlier ranging candle (recovering prior day's losses, closes near high side of daily range), suggesting momentum buyers stepping in.

5. Moving Averages (Simple 5/20/50)

• Estimating current moving averages from daily closes:
  • 21-Day MA: Trending upward, around $9.35 (rising since the May base, after the sharp April drop and strong rally in late May).
  • 8-Day EMA: Approx $9.73
  • 50-Day SMA: Near $9.00
• Observation: Price closing above 8/21/50-day MAs, confirms strong underlying medium-term momentum. Prices above short and med-term trends = bullish posture.

6. RSI (Relative Strength Index) & Momentum

• Daily RSI calculated over last 14 closes: Looks to be approaching 70 after the latest rally. From sub-30 in April (oversold) to high-50s/60s now.
• Interpretation: Market has switched from oversold reversal (late April, sub-$8) into momentum breakout. Not yet overbought (>70); still room for bullish continuation.

7. MACD (Moving Average Convergence/Divergence)

• Estimated MACD lines (short 12/26, signal 9): Both rising with a bullish crossover near late May. Histogram remains positive, indicating continued upside momentum.

8. Bollinger Bands

• Band Compression/Expansion: Bollinger Bands expanded sharply with the gap down and subsequent rally. Current price is at or slightly above the top band, indicative of high volatility and potential short-term overextension but also suggests trend acceleration.

9. Fibonacci Retracement from March High ($11.46) to April Low ($7.61)

• Key Levels:
  • 23.6%: $8.59
  • 38.2%: $9.41
  • 50.0%: $9.53
  • 61.8%: $10.07
• Action: Price is testing and consolidating above the 61.8% retrace ($10.07), trying to re-enter a former high-volume node—if it holds above $10.00-$10.07, next extension to $10.62 and then $11.00 (gap resistance).

10. Trendlines & Chart Patterns

• April–May: Clear V-shaped recovery with acceleration in late May/early June.
• No Head & Shoulders or Double Top: Instead, structure more akin to a cup-and-handle, with June 9-10 as potential handle.
• Short-term Uptrend: Higher highs since May 23. Today’s intra-day pattern was a break, pullback, and a close above resistance.

11. Gap Analysis

• Gap Down (June 9): From just under $10.70 to $9.40's—such gaps often attract retracement. Today's action partially filled that gap to $10.12, but full fill not completed.

12. Order Flow & Market Depth

• Price Action: Each time price moved above $10.00, retracements were met with volume buy spikes, indicating absorption of sellers and evidence of accumulation.

13. Volume Profile Analysis

• High-Volume Node: $9.50-$10.00:
  • Heavy transaction volume—significant area of control, likely institutional cost basis in recent rebound.
• Low-Volume Area: Above $10.20 up to $10.60—if $10.12 is breached, fast move upwards possible as there are fewer historical trades in that zone.

14. Short Term Oscillators – Stochastic

• Stochastic (K%D): Likely in bullish range but not yet overbought. Choppy but not divergent, supportive of ongoing rally.

15. Mean Reversion vs. Momentum Framework

• Current Action: Momentum trend reversal is clear since late May. Retest and hold above $10.00 will energize bulls and increase short cover, but caution for a possible brief mean reversion toward $9.80 if $10.12 sees heavy resistance.

16. Sentiment & News Implied by Volume

• Likely recent news event or earnings caused the massive flush and rebound; the follow-through and absorption at $9.50-$10.00, along with improving technicals, suggests news was digested and buyers are retaking control.

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Synthesis and Final Projection

• Short-Term (Next 24h):
  • Odds favor additional upside momentum as buyers press for a full gap fill back to $10.20-$10.60.
  • Pullbacks to $9.90-$10.00 are likely to be bought, as this is a new support zone.
  • Immediate volatility can cause brief dips to $9.90, but trend-following systems will likely trigger continued buying above $10.07 (Fibo + local high + psychological round number).
• Risk: A failed move back below $9.90 and especially below $9.60 support would flip the bias back to range/chop, but no present evidence for that.

Conclusion:

• Technicals are bullish after a large flush and high-volume accumulation phase. The bullish engulfing structure on June 10, combined with heavy volume, strong trendlines, moving average confluence, and volume profile support above $10.00, all suggest that a short-term BUY (long) is warranted.
• Target a break and hold above $10.07 (Fibonacci and daily high resistance) for a continuation drive toward $10.60-$10.70 (gap fill and swing high).

Optimal Entry: A minor pullback to $10.00 (intraday support, round number, and recent consolidation base) is ideal for risk management. Take Profit: $10.60 (gap fill, resistance, and area of historical supply).

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Order Type: BUY (Long position) Entry Price: $10.00 Target/Take Profit Price: $10.60