WWE Reigns Again

Wrestling  - it's an American pastime.

Entertainment for the masses. A drama that never ends. Where the baby face (good guy) goes up against the heel (bad guy) and we cheer them on. The faces behind the characters may change, but the premise behind the scenes remains the same.

And WWE has single-handedly dominated the wrestling business for nearly two decades.

Household names like Hulk Hogan, Shawn Michaels, The Rock, and Stone Cold Steve Austin established their careers in Vince McMahon's entertainment empire. New stars like Roman Reigns, Dean Ambrose, and Seth Rollins strive to make their mark now with a new generation of fans.

Coming up later this month is one of WWE's signature pay per view events, Summer Slam. Just in time for this of course, WWE's stock looks like it's laying the smack down on any one that has been doubting its comeback!

We discussed WWE earlier in July, noting the nearly two month long consolidation above $11, since its rapid fall from all time highs above $30 a share in March.

Despite the overall markets taking a beating at the end of last week, WWE's stock has notably remained resilient to selling pressure. Let's take a look.

WWE Network: International Roll Out

$WWE: World Wrestling Entertainment, Inc.

After the jaw-dropping sell off in early May that took WWE from $20 to $11 in one day trading session, the stock went through two months of consolidation between $11 and $12 a share.

The $12 area was resistance until mid-July, when the bulls finally pushed through, as noted by the blue arrow on the chart.

The company released second-quarter results last week and the news that seems to have kept the bullish momentum going is the announcement that the WWE Network will be launched to fans outside of the United States in 170 countries starting on August 12th.

The international roll out of the WWE Network is the good news that the bulls are holding on to for now, since domestic subscription numbers have been disappointing.

In trading last week, the stock finally pushed through $13 and closed decisively above it on Monday, finishing at $13.42, despite the recent stock market downturn.

It remains to be seen how wrestling fans overseas will respond to the WWE Network release and whether anticipation of its results will be enough to keep bulls interested.

Nonetheless, the stock chart tells a story that can't be ignored: selling pressure seems to have abated and a push higher to close the gap from the early May sell off may be in play over the coming months.

The Relative Strength Index (RSI) has steadily risen over the past two months, an indication that bullish sentiment remains in play. The $12 and $13 levels are now support, as is $11 below. Up above, the $14 area could be an approaching resistance level, followed by the $17-$20 area, assuming the bulls can keep up the pressure and push the stock back up that high again.

Time will tell, but for now, WWE reigns again.