WBD, NFLX and CMCSA Forecast – Media Stocks in Focus

WBD Technical Analysis

Warner Bros. Discovery, of course, continues to be fairly well elevated as Netflix is buying this company. Short-term pullbacks should continue to be buying opportunities until we continue to get headlines that say otherwise. I don’t really think that this market is one that obviously you can short. And if you do get a little bit of relief here as far as pressure, that might be worth taking advantage of.

The 50-day EMA is down at the $23 level and rising. For me, that is right there in a cluster that was supported previously anyway, and of course, resistance. So maybe the market memory, this simple analysis, is as long as we’re above $23, things are barely okay.

NFLX Technical Analysis

Netflix looks like it’s going to be basically where it ended the session as it opens on Tuesday. It is still a little negative. That’s not a huge surprise. They just outlaid a ton of money on Warner Bros. Discovery. But in the end, a lot of this will end up being positive for the company as they build their ecosystem up with an already somewhat stable and proven plan.

So ultimately, I do think this ends up being a good thing. And I do think that the pullback in Netflix ends up enticing buyers. I’d be particularly interested in this market if we do get down to the $80 level, maybe even the $83 level, which historically has been important.

CMCSA Technical Analysis

Comcast had a pretty good day on Monday as it announced that it is expanding its footprint into another group of homes, I believe, somewhere around 30,000. This does look like a market that’s trying to find its bottom, but this is a miserable-looking chart. At this point in time, until something structurally changes with the business, it’s probably a fade-the-rally type of scenario.

I am going to be looking at this through the prism of where I can sell it and how much I can sell it for. With this being the case, I look at this as a potential opportunity to short this market at higher levels because quite frankly, this is a market that although you could make, I guess, a little bit of an argument for an attempt to bottom out, the reality is that we have so far to go before things structurally change for Comcast that I think this is just going to be a nice opportunity to get short, maybe somewhere near the $30 level. If we turn around and break below the $26 level, the bottom falls out.

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