A new media company showed up on Wednesday's long stock scan. Sinclair Broadcast (NASDAQ:SBGI) is the largest television station operator in the United States, owning or operating more than 154 stations across the country in nearly 80 markets, mainly in the South and Midwest. That is huge. It’s stock has languished over the past 3 years, though, as rivals have been picked up via merger activity. It's too early to tell if the long term is going to change. But the short term looks very good, indeed.
The long-term chart above shows a drawn out descending triangle over 3 years, with lower highs. But the momentum indicators suggest it may be ready to run toward the top of that range at least. The RSI is lifting -- and in the bullish zone -- while the MACD is about to cross up. Shifting to the shorter timeframe below shows just how good it may be in the near term.
The smaller scale shows a tighter descending triangle and a breakout to the upside on Wednesday. That would target a move higher to 35.60, above the longer triangle. Wednesday’s move makes for a higher high in the short run and sees the Bollinger Bands® opening to the upside. Momentum has been strong as seen by the RSI and MACD. But also, the last 4 days have seen strong price action higher. The stock has over 20% short interest, which could be playing a role in the move higher.