Disney Might Be Positioning for Another Leg Up
Disney has been beaten down since the beginning of 2021. In Q4 of 2023, Disney rallied with most of the market as investors began pricing in rate cuts from the federal reserve.
Recently, the rally has cooled off, and the price of DIS has been consolidating in a downward price channel. As of last week, Disney seems like it is priming for a breakout.
With Netflix reporting earnings very soon, it is possible that we may see some sentimental price moves in Disney due to their streaming service segment.
Technical Outlook
Disney seems like it is attempting to break out of the price channel seen below. If we see a breakout, the first resistance to watch is around the 96.00 price point. When the price climbs above this price, then the continuation of the short-term uptrend will be official.
It should be mentioned that the price is near the very short-term resistance of the downward price channel. It is always possible that the price will reject this trend line and stay within this downward range. So, a stop loss is recommended.
Bullishness in The Weekly Indicators
Weekly RSI has flipped into bullish territory, and it appears that it wants to rebound off of its 50 value. Weekly MACD is about to perform a golden cross above its histogram and into bullish territory. Average daily trade volumes have been steadily climbing with the rally that started near the end of last year. These are three things that you will see when there is a healthy uptrend.
Conclusion
Disney has been in a downtrend for roughly 2 years. You don't want to fight the trend, but a stock's price can't fall forever. At least not a company like Disney, which has healthy fundamentals and sound financials.
Personally, I am strongly considering entering into a bullish swing trade if DIS breaks out of the price channel that I mentioned.
Good Luck Trading
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.
Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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OceansWave : I also did my own Quick Look on the technicals… seems pretty bullish after the 5EMA crossed the 13EMA on Wednesday I think. RSI is not overbought at this stage.. The bollinger bands are closing which could mean a breakout upwards or downwards… got to see how the market starts off on Monday though…
SpyderCallOP OceansWave: agreed. I have been watching those daily candles consolidating for a while now. There was even a bullish divergence on the 4-hour candles with the MACD a few days ago.