WMG stock price has been in a downtrend since the beginning of 2023, as the price formed an annual high at $38.76 and witnessed a sharp decline. The first and second quarter earning results are not so positive. The company was not able to beat the consensus estimates of revenue and earnings per share in quarter 1.
The quarter 2 results were a bit favorable as the music company was able to beat the revenue estimates but could not show better earnings per share. During the start of June, the price formed a support at $24 level after experiencing a downfall of roughly 15.96% from the May high of $28.66.
The Warner Music Group stock price then commenced a bullish rally for recovering from the losses. Currently, the stock price has broken the major resistance level of $27.20 and is headed toward the next major resistance of $28.50. The last candle has closed as a strong bullish candle.
If the next candle can rise above the high of the last candle and shatter the resistance of $28.50, there is a high probability for the price to head toward $31.10 which is the next resistance level. On the other hand, if WMG stock price rejects $28.50, it might retrace toward $27.20 to form a support for further rise.
Recent Partnerships Of Warner Music Group
Canva has also announced its partnership with Warner Music Group and Merlin which will allow users to use music clips in their designs. WMG has also partnered with Sandbox, one of the leading crypto projects, which will help fans in creating audiovisual experiences in their own local environment.
Will WMG Stock Price Rise Above $30 This Week?
The stock price has crossed above 20 and 50-day EMAs suggesting a rise in the bullish momentum. The last candle faced rejection from 100-day EMA which might be a concern for the price. Chaikin money flow score is 0.19 indicating strong strength in the market.
RSI traded at 66.41 implying that price possesses bullish momentum. The stock price has crossed the upper band of Bollinger which indicates the possibility of short-term pullback.
Conclusion
Technical parameters are favoring the buying side but the concern is regarding a pullback which price might witness for correcting the current bullish rally. The market structure and price of Warner Music Group is bullish.
Goldman Sachs has also given a buy rating as it is well-positioned to benefit over the years from the growth in the music industry, including growth in subscriptions and ad-supported streaming. There is also a growth in the new licensing opportunities created by emerging multimedia and technologies.
Technical levels
Major support: $24 and $25.80
Major resistance: $31.10 and $33.60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/07/10/warner-music-group-corp-wmg-stock-price-surges-nearly-10/