Traders,

Let’s walk through why Warner Bro. Discovery (WBD) made the weekend’s Scouting Report. Unless my memory is betraying me, this is the first time WBD has made the cut for a bullish idea in one to two years.

That makes it noteworthy, and it deserves a closer inspection.

The weekly chart finally rallied high enough to eclipse the declining 50-week moving average. We haven’t been above it since May 2021.

The latest earnings release came out last week and didn’t derail the uptrend.

The daily chart is now above all major moving averages.

A trading range has developed, with prices now testing the topside, hinting at an upside breakout.

Distribution signs (high volume down days) have dried up, suggesting institutions favor the buy side of late.

 Take time today to study the chart further. It’s a good case study on the technical signs you want to see that confirm a trend reversal.

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Video of the Day: Jedi Options

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Chart of the Day: Warner Brothers Discovery (WBD)

Not a bad little setup!

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