Company Overview: Warner Bros. Discovery, Inc. (NASDAQ: WBD) formerly Discovery, Inc., is a global media and entertainment company. The Company offers audiences the differentiated and complete portfolio of content, brands, and franchises across television, film, streaming, and gaming in approximately 220 countries and territories and 50 languages.
As per our previous report published on WBD on 27th December 2022, Kalkine provided a ‘Buy’ stance on the stock at USD 9.19 based on ‘robust topline performance in Q3FY22, upside indicated by valuation and key risks associated’, and the stock price has now moved by ~62.24% since then and the stock has now moved above R1 and R2 mentioned in the report.
Noted below are the details of support and resistance levels provided in our previous report:
WBD’s Daily Chart
WBD’s Daily Price Chart. Source: REFINITIV, Analysis by Kalkine Group
WBD’s shares have delivered decent return over the past one month and charted into an overbought zone on daily price chart. Further, at the current trading levels stock might witness a resistance of 200-day EMA on daily price chart. Hence, considering the 14-day RSI at 75.91 (Overbought Zone) and current resistance near 200-day EMA, Fed’s rate hike announcement due in first week of February which could large volatility in market, a ‘Sell’ rating is assigned to “WBD” stock at the closing market price of USD 14.91 (as of 27th January 2023).
Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 27th January 2023. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.
Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’
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