Paramount a Hidden GemCurrent Setup
PARA has recently cleared weekly resistance around $6.60, with the latest candle closing just above that level.
This breakout comes from a multi-year consolidation range between ~$3.75 (lows) and ~$11 (prior highs).
On the weekly chart, price action shows strong momentum and a clean break above the consolidation ceiling.
Fundamental Context
In July 2024, Skydance Media agreed to merge with Paramount Global in an $8 billion deal, aiming to form "Paramount Skydance" by 2025
Paramount recently announced a ~$500 million cost-cutting program, including 2,000 job cuts and a $6 billion write-down. Analysts noted the market reacted positively, with the stock rising ~5%
.
The potential Skydance merger is seen as a strategic move to streamline operations, focus on streaming, and alleviate Paramount’s ~$14 billion debt
en.wikipedia.org
Technical Triggers
Weekly Breakout – Close above $6.60 confirms breakout from long-term range.
Retest Opportunity – Pullback towards $6.60–$6.86 may offer an entry point for trend continuation.
Higher High Potential – Weekly structure aims next at the ~$11 target zone (prior range ceiling).
Suggested Trading Plan (Weekly Setup)
Action Entry TP1 TP2 Stop-Loss
Breakout Trade ~$6.60 after retest wicks $9–11 Open for bigger trend Below $6.10 or weekly close under resistance
Position sizing: Risk ~1–2% of your portfolio per trade.
Confirmation: Look for bullish weekly close and no major breakdown in fundamentals/news.
Why This Could Work
Clears key resistance and confirms trend shift.
Corporate cost-cutting + Skydance merger strengthens future outlook.
Market sentiment turning positive—key catalyst moving from restructuring to growth.
Bottom line: PARA breaking out from a 2-year range, now supported by cost reductions and a strategic merger, shows strong technical and fundamental alignment. Feed momentum with confirmed weekly closes, retest entries, and manage risk prudently.
