Discovery Stock Chart Analysis: Sell Short Trade Alert

By Gareth Soloway of In the Money Stocks

President & Chief Market Strategist at IntheMoneyStocks • Feb 22, 2021 at 5:49 PM EST

The Discovery stock chart analysis signals a sell-short swing trade.

Shares of Discovery Inc (DISCA) surged today on the back of better-than-expected earnings. While bullish news, the Discovery stock chart analysis signals a sell-short swing trade. Not only is the stock up 37.5% in just two weeks, but price just ran into a major trend line of resistance. In addition, the RSI is at a whopping 87, a level that is ultimately unsustainable in the near-term. Discovery stock chart analysis signals a pull back to $49.75 in the next week or so, good for a 10% profit for swing traders.

(Click on image to enlarge)

Disclaimer:

All comments made by InTheMoneyStocks, LLC and its subsidiaries, instructors, and representatives are for educational and informational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, or any other financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities mentioned herein. InTheMoneyStocks, LLC and its representatives assume no responsibility for your trading and investment results. All information on the website was obtained from sources believed to be reliable., but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. InTheMoneyStocks, LLC, its employees, representatives and affiliated individuals may have a position or effect transactions in the securities herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves a very high degree of risk. Futures and Options trading are not suitable for all investors. Past results are not indicative of future results. InTheMoneyStocks, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment results.