Can WBD Stock Smash All-Time High?

The Entertainment industry has been enjoying a 10% annual growth in earnings, while Warner Bros. Discovery has been facing a sharp decline of -53.3% per year, as reported by SimplyWall St., a site that offers financial data and analysis. However, the company has been reporting increases in its revenues at an impressive rate of 27.9%, yearly.

Warner Bros. Discovery’s debt-to-equity ratio is 102.3%, which means its total debt of $48.9 Billion exceeds its total shareholder equity of $47.8 Billion, as shown by the data from SimplyWall St., a site that offers financial data and analysis. The company has $130.6 Billion in total assets and $82.7 Billion in total liabilities.

The market capitalization of WBD stock is $31.499 Billion and the total revenue is $33.82 Billion. Moreover, the stock’s basic EPS is -$3.75 and the price-to-earnings ratio is -3.5. Whereas, the average volume is 67.994K and the current volume is 556.827K – the current volume is above average volume.

Moreover, the stock has done well this month, increasing by 6.07%. It surged by 3.11% in the last six months. Warner Bros. Discovery Inc. (NASDAQ: WBD) stock has a positive year-to-date return of 33.99% and a negative 1-year return of -9.77%.

Technical Analysis of Warner Bros Price in 1-D Time Frame

The price action shows that Warner Bros Discovery stock (NASDAQ: WBD) price bounced back from the demand zone and the all-time low of $8.83 at the beginning of 2023 and soared by 85% to $16.32 in three months.

However, the WBD stock price faced rejection and dropped to a new support level at $10.84, from where Warner bros price reversed and met the nearest resistance at $14.55. 

Since then, the WBD price has stayed in a contraction zone and formed a symmetrical triangle pattern between the upper and lower trendlines. This pattern shows that the WBD stock price is consolidating and could break in either direction, depending on the buyers and sellers. 

As of now, the WBD price is stable. This means that if the WBD stock price gets more pressure from the bears, it could fall below the nearest support levels which are $10.84 and $8.83.

On the other hand, if the WBD price maintains the current level, it could rise to the first and second targets at $14.55 and $16.32 respectively

At the time of publishing, Warner Bros Discovery stock is trading above the 20, and 50-day EMAs (exponential moving average), which is supporting the Warner Bros stock price trend. However, WBD stock is trading below 100, and 200-day EMAs. Hence, Warner Bros price suggests that it can be either upwards or downwards. As of now, the price is consolidating over the daily time frame chart.

The current value of RSI is 52.20 points. The 14 SMA is above the median line at 52.88 points which indicates that the Warner Bros price is consolidating and may choose a direction soon.

The MACD line at 0.0949 and signal line at 0.0654 are above the zero line and a bullish crossover was observed in the MACD oscillator which signals more bullishness for the WBD stock price, but the lines are too narrowed it can be presumed the stock will consolidate.

Summary

Warner Bros Discovery Inc. (NASDAQ: WBD) shows that the investors and traders of the stock are indecisive on the 1-D time frame. The RSI and the 14 SMA show that the price is consolidating and waiting for a direction. The MACD shows a bullish crossover but the lines are too close, indicating a lack of momentum. The symmetrical triangle pattern suggests that the price could break in either direction. The stock is indecisive and needs a catalyst.

Technical Levels

• The nearest support levels: $10.84 and $8.83.
• The nearest resistance levels: $$14.55 and $16.32.

Disclaimer

In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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