WBD, PSKY and NFLX Forecast – Media Stocks Jump with Merger

WBD Technical Analysis

Warner Brothers Discovery has been on an absolute tear for the last couple of trading sessions as rumors continue to persist that Paramount is in talks to buy them out. That being the case, you can see the last couple of days have been a massive run higher on extreme volume. In pre-market trading, it does look like it’s going to slip a little bit, but that makes a certain amount of sense after basically rising 50 % in two days.

A short-term pullback could bring this market back down to the $16 level, and it really wouldn’t change much. We’ll just have to see how it behaves in that general vicinity. Clearly, after this news, you don’t want to get in front of this. Shorting this market is a horrible idea.

PSKY Technical Analysis

Paramount Skydance looks somewhat positive in the early market, as pre-market trading has been good for it, and you can see it has reacted to the idea of the merger quite well as well. It’s not just Warner Brothers Discovery gaining, Paramount has done quite well.

Short-term pullbacks, I think, offer buying opportunities, especially somewhere closer to the $17 level, assuming that the deal doesn’t fall through. All things being equal, I think we’ve got a scenario where traders will try to find value on any dips.

NFLX Technical Analysis

Netflix looks a little bit softer in pre-market trading, but quite frankly, there’s not much there to worry about, as it is a fraction of a fraction of a percent. All things being equal, this is a market that I think has plenty of support underneath, especially near the $1,150 level and then again at the $1,100 level. The 200-day EMA is close to the $1,100 level as well, so I think that ends up being a bit of a floor in your market. If we turn around and break above the $1,250 level, that would be very positive, but right now, I think maybe we’re just giving back some of the gains in order to replenish for a potential rally from here.

For a look at all of today’s economic events, check out our economic calendar.