Hello my dear padawans of the charts. I hope everybody had a good weekend and is ready to start what promises to be a good week for the markets given the amount of (good) stocks that are reporting earnings this week. DIS is not among of them, but its ER is coming soon on 02/11. Of course things can change, specially with earnings around the corner (and Disney+ getting so many subscribers), but things are not looking good for DIS here. It is looking weaker than in my previous analysis (link below).
TECHNICALS
In my previous chart DIS was above the long term resistance. However, it failed to stay there. It is now below that resistance and struggling to move back up. It found support on the 14/21 emas but didn't move much to the upside. It is sitting on the 21-ema now after having broken below it a few times. Other things to take into account:
1. MACD crossed over bearish and is moving down to the 0 level. If it crosses below it could be very bearish.
2. The 14 ema is about to cross bearish under the 21 ema, another potentially strong bearish signal.
2. ADX is curling down very sharply, meaning the current uptrend is getting weak.
3. -DI is moving up while +DI is moving down, meaning a change in sentiment is happening.
4. RSI is still above the 50 level--where it is sitting--but has been moving down steadily
5. The gap was still not filled. Gaps don't need to be filled necessarily but since DIS reached ATH and is in retracement, it seems that this is an exhaustion gap, which most of the times is filled.
BEARISH SCENARIO
If DIS keeps going down, it will probably find support on the 50ema and some fib levels on the way, so expect price action there and even reversal depending on other factors. If you are a long term holder I think anywhere on/below the 50ema is a good buy opportunity. Keep in mind that the price could fill the gap and continue going lower but if you are in for the long term this should not scare you. You would still be getting the stock at a discount from ATH. You can DCA your way into it as well. (Not financial advise).
NEUTRAL/BULLISH SCENARIO
DIS could benefit from potential euphoria generated by the earnings of big players this week and continue its sideways move (or even move up). Given the indicators, I am bearish in the short term but there are other forces on the market that cannot be ignored.
Again, keep in mind earnings is right around the corner, so plan to trade around it as well in the coming weeks.
Safe trades my friends!
Share the love:
If you get anything out of this TA, please like the chart so it moves up and others can benefit from my work. A simple click on the like button goes a long ways.
Follow for more:
I have an outstanding winning rate (check my other charts). If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
TECHNICALS
In my previous chart DIS was above the long term resistance. However, it failed to stay there. It is now below that resistance and struggling to move back up. It found support on the 14/21 emas but didn't move much to the upside. It is sitting on the 21-ema now after having broken below it a few times. Other things to take into account:
1. MACD crossed over bearish and is moving down to the 0 level. If it crosses below it could be very bearish.
2. The 14 ema is about to cross bearish under the 21 ema, another potentially strong bearish signal.
2. ADX is curling down very sharply, meaning the current uptrend is getting weak.
3. -DI is moving up while +DI is moving down, meaning a change in sentiment is happening.
4. RSI is still above the 50 level--where it is sitting--but has been moving down steadily
5. The gap was still not filled. Gaps don't need to be filled necessarily but since DIS reached ATH and is in retracement, it seems that this is an exhaustion gap, which most of the times is filled.
BEARISH SCENARIO
If DIS keeps going down, it will probably find support on the 50ema and some fib levels on the way, so expect price action there and even reversal depending on other factors. If you are a long term holder I think anywhere on/below the 50ema is a good buy opportunity. Keep in mind that the price could fill the gap and continue going lower but if you are in for the long term this should not scare you. You would still be getting the stock at a discount from ATH. You can DCA your way into it as well. (Not financial advise).
NEUTRAL/BULLISH SCENARIO
DIS could benefit from potential euphoria generated by the earnings of big players this week and continue its sideways move (or even move up). Given the indicators, I am bearish in the short term but there are other forces on the market that cannot be ignored.
Again, keep in mind earnings is right around the corner, so plan to trade around it as well in the coming weeks.
Safe trades my friends!
Share the love:
If you get anything out of this TA, please like the chart so it moves up and others can benefit from my work. A simple click on the like button goes a long ways.
Follow for more:
I have an outstanding winning rate (check my other charts). If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
Comment:
I have charted $DIS twice and both times I said it looked very weak. I closed my position then and started watching it go down. Now we have an Island Reversal pattern to corroborate the bearishness.
