Tuesday, March 16, 2021 1:24 PM EDT
Shares of Discovery Inc (DISCA) is higher today by around 3%, continuing its epic run in 2021. Since the start of 2021, Discovery Inc is up more than 150%. Based on Discovery stock chart analysis using the RSI indicator, a sharp fall may be coming. There is a key three-headed negative divergence on the daily RSI.
The daily RSI is at an overbought level of 82.70. In addition, the weekly RSI is at a whopping 95. The negative divergence should get investor attention as that is usually a sign of a drop coming in the next week or so. The RSI at 95 on the weekly chart signals a possible multi-month high being put in. The first support is at $67, the second support is at $62.50.
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