Warner Bros. Discovery May Have Just 'Maxed' Out the Bulls

The stock may soon settle at a price less than a monthly streaming subscription.
Stocks quotes in this article: WBD

Warner Bros. Discovery (WBD)  announced at a press event Wednesday that "Max" was the new name of its streaming platform. The newly named platform will go live on May 23, and will feature material from Discovery+ , as well as the libraries of HBO and WBD-owned properties such as Turner Classic Movies, The Cartoon Network and more.

Max will cost $15.99 a month for the ad-free version and $9.99 per month for the ad-supported tier.

Let's check the charts and indicators of WBD and see if the stock is worth signing up for.

In the daily bar chart of WBD, below, I see a mixed chart picture. The shares made a low in late December and rallied but that strength is fading fast. WBD is trading below the 50-day moving average line but still above the bottoming 200-day moving average line.

The trading volume is neutral while the On-Balance-Volume (OBV) line has been flat since the beginning of February. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line and tells me there is little trend strength.

 
In the weekly Japanese candlestick chart of WBD, below, I see a weakening picture. The shares trade below the 40-week moving average line.
 
The weekly OBV line looks like it is starting to move lower. The MACD oscillator is hugging the zero like in the daily chart above.
 
 
In this daily Point and Figure chart of WBD, below, I can see a downside price target in the $11.50 area.
 
 
In this weekly Point and Figure chart of WBD, below, I used a five-box reversal filter. Here the software projects a price target of zero, $0.00. Interesting.
 
 
Bottom-line strategy: The whole world of streaming services has left me in the dust. My sons and daughter-in-laws and grandchildren seem to know all about them. The charts of WBD, above, suggest lower prices are possible in the weeks ahead.
 
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TAGS: Investing | Stocks | Technical Analysis | Movie Production | Telecom Services

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