WBD, NFLX and PSKY Forecast – Take Over War Heats Up

Warner Brothers Discovery Technical Analysis

Warner Bros. Discovery continues to see a bit of a push to the upside because we now have Paramount Skydance jumping into the mix, talking about buying it out. So now we have a bidding war. It will be interesting to see how this plays out, but the one winner will certainly be Warner Bros. Discovery. So, with that being the case, I think the market probably remains somewhat bullish. Short-term pullbacks are buying opportunities. And according to pre-market trading, it does look like we are going to rise a bit. Volume has spiked, of course. And with that being the case, this is a move that could perhaps continue to the upside. We’ll just have to see how the bidding war plays out.

NFLX Technical Analysis

One of the companies involved in the bidding war, of course, is Netflix. They’re the ones that kicked everything off, and they have been falling over the last couple of weeks. That being said, part of this is due to the cash outlay that they will certainly have to put out there to get Warner Bros. Discovery, but there’s a certain amount of synergy between these two companies,  that I think makes a lot of sense. And I suspect that Netflix may finally get its way, but it’s going to pay up for it.

Pay attention to the $90 level, possibly the $85 level, as a floor in the market based on historical price action. But this is a little bit different scenario because this isn’t about supply and demand as it was back in April. This is about how the merger will play out, or it will at all. So, I think at this point, still pretty negative. You want to see a V pattern that you can trade on the right-hand side.

PSKY Technical Analysis

Paramount Skydance is slightly positive in the early hours as it looks like it is going to bounce from the 200-day EMA. And of course, its bid into the acquisition of Warner Bros. Discovery changes things. It could give it a little bit of a boost, doubling its business essentially, but we’ll have to wait and see if that actually plays out. If Paramount Skydance can break above $16, that would be a very strong sign that could send it looking to the $20 level before it’s all said and done.

That being said, this is a bidding war. So we’ll have to see how this plays out but certainly at this point in time, this is a very fluid situation. You’ll get one winner and one loser. Although in the end, I think Netflix is offering value out of the three from a longer-term perspective.

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