Charter Communications (CHTR) stock has plunged, down around 18% in late July, after weak Q2 results that included a worse-than-expected loss of 117,000 broadband subscribers, flat revenue, and an EPS miss ($9.18 vs. $9.58 expected). While mobile growth offered some relief, Charter continues to bleed customers in its traditional cable and bundled services, as more viewers cut the cord in favor of modern streaming options like Netflix, YouTube TV, and other digital-first platforms. These competitors offer greater flexibility and often lower costs, accelerating Charter’s subscriber churn. The stock has been volatile amid this shift, with further uncertainty surrounding a potential $34–35 billion Cox Communications merger. Analysts remain cautious, generally rating the stock a “Hold” with mixed price targets.
Shares of Charter Communications (CHTR) have been trading in a range between approximately $250 and $400 since May 2022. The stock has made several attempts to break above $400 but has not been able to maintain those rallies. In June of this year, CHTR briefly moved into the “favored zone” on the SIA S&P 100 Index Report, which signals relative strength, but this momentum quickly faded. On June 10, the stock reversed out of that favored zone, providing rule-based SIA practitioners with a signal to exit. The most significant event occurred on July 25, the day of the company’s earnings release, when shares dropped 18.5% in a single session. This was one of the largest one-day declines in Charter’s history.
Since then, shares have appeared to stabilize, with the $250 level acting as support for now. However, the technical outlook remains cautious. The SIA Media sector is currently unfavored, and shares of CHTR hold the weakest reading of a 0 SMAX score that might further indicate weak momentum. Looking at the Average Directional Index (ADX), which measures the strength of the trend, a bearish pattern may be emerging. The negative directional indicator line, shown in green, is above the positive directional indicator line, shown in red. At the same time, the ADX line, shown in blue, is rising above 20, potentially confirming that the downtrend is gaining strength. In summary, while Charter shares have found some support near $250, technical indicators suggest increasing bearish momentum, so caution is advised.
Resistance may be the more challenging part of the current technical setup, as the entire region between current levels and $400 might need to be cleared to improve the technical outlook. The first resistance level appears at the 3-box reversal point of $278.87, followed by additional resistance at $307.89, $320.33, $375.32, and the top level at $422.67. However, the zone between $390.48 and $414.38 has been highlighted as a significant resistance cap. Shares of CHTR are once again in a negative trend on the point and figure chart and are positioned near the very bottom (position #100) on the SIA S&P 100 Index Report. Over the past quarter, CHTR has delivered a -35.59% return compared to a +17.44% return for the benchmark S&P 100 Index, resulting in an opportunity cost differential of 53.03%.
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