WARNER MUSIC GROUP CORP-CL A (WMG) Stock Technical Analysis
NASDAQ:WMG - US9345502036 - Common Stock
We assign a technical rating of 9 out of 10 to WMG. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, WMG is showing a nice and steady performance.
WMG has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 33.98. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 31.75, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.
- A Pocket Pivot is a price/volume accumulation pattern. A Pocket Pivot occurs when price moves up with volume higher than the maximum down volume registered in the previous 10 days.
More info and screens
28.34
We found 3 important support areas.
- Support @31.75 from a horizontal line in the daily time frame.
- A support zone ranging from 30.60 to 30.64. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame.
- A support zone ranging from 28.63 to 28.63. This zone is formed by a combination of multiple trend lines in multiple time frames.
2 important resistance areas can be observed.
- A resistance zone ranging from 33.98 to 34.39. This zone is formed by a combination of multiple trend lines in the daily time frame.
- Resistance @37.23 from a horizontal line in the weekly time frame.
The Technical Rating and Setup analysis above combine different indicators and trends in different timeframes. Individual signals from indicators may give more contradictive signals and should always be interpreted in the more global context.
| Indicator | Value | Signal | Comment |
|---|---|---|---|
| ChartMill Long Term Trend Indicator | UP | POSITIVE | The long term trend for WMG is up. |
| ChartMill Short Term Trend Indicator | UP | POSITIVE | The short term trend for WMG is up. |
| ChartMill Relative Strength | 81.76 | POSITIVE | WMG has a high relative strength, it outperformed 81.76% off all stocks on the market. |
| Simple Moving Average/SMA (20) | UP | POSITIVE | The current price of WMG is above the rising SMA(20). |
| Simple Moving Average/SMA (50) | UP | POSITIVE | The current price of WMG is above the rising SMA(50). |
| Simple Moving Average/SMA (200) | UP | POSITIVE | The current price of WMG is above the rising SMA(200). |
| Relative Strength Index/RSI (14) | 61.01 | NEUTRAL | The RSI value for WMG is a neutral value. |
| Moving Average Convergence Divergence/MACD (12, 26, 9) | -0.01 | NEGATIVE | The MACD value suggests WMG has a negative trend. |
| Stochastics (14,3) | 61.63 | NEUTRAL | The Stochastics value for WMG is a neutral value. |
| Average True Range in percent/ATR (20) | 2.28 | MEDIUM VOLATILITY | The ATR as a percentage value for WMG suggests some volalility. |
| Average Directional Index/ADX (14) | 38.73 | POSITIVE | The high ADX value value for WMG suggests a strong trend. |
Important!: this is just an example which is fully automatically generated based on the analysis above and should in no way be interpreted as a suggestion. Always make your own analysis and determine your own entry and exit points.
| ENTRY | EXIT | DISTANCE | CAPITAL |
|---|---|---|---|
| 33.26 | 32.24 | 1.02 (3.08%) | 25.00% |
| An entry @33.26. This is a Buy Stop order right above the 10 day moving average. | An exit @32.23. This is a Stop Loss order right below the 10 day low. | The worst case loss on the trade is limited to 1.02 points, which is 3.08%. | For a 0.77% total portfolio risk, you can invest 25.00% of your capital in this trade. |
- The distance between exit and entry is rather small compared to the average daily movement of WMG. Please evaluate whether better entry and exit points can be found.
- The generated setup is based on the nearest support and resistance areas. If you are looking for a more long term trade, probably a wider stop is advisable.
- This trade setup was generated fully automatically and should not be interpreted as trading advice. Always check the related news for upcoming earnings or other events. Make your own analysis and trade at your own responsibility.
33.11
-0.24 (-0.72%)