DIS looking bullish after earnings?
After a positive response to earnings recently,
DIS
pulled back almost 50% while creating sup/res at the 106 / 112.50 range respectfully. From an hourly POV, the recent pullback formed an inverse head & shoulders pattern which is a sign of reversal to the upside. Will this break the 112 area or bounce off resistance and continue the swing?
Prediction:
DIS will pull back to the neckline (108.50 area) which happens to also be the 50% fib level. If this happens, I will be going in after the first green candle showing a bounce at the golden zone. I will also enter if we cross todays overnight high of 109.69.
Conditions:
- H&S pattern, bouncing off 200 EMA, bouncing off VWAP, Earnings, 100 EMA crossing 200 EMA (daily POV)
Entry:
- Green candle at the 50% fib
Stop:
- 107.47 (Right shoulder)
Target:
- 116.65
Notes:
Divergence: N/A
Pattern(s): Inverse H&S
EMA: Bouncing off 200
Volume: 108.27 area
VWAP: Bouncing off vwap
Overbought/sold: N/A
Fibonacci: N/A
DIS
pulled back almost 50% while creating sup/res at the 106 / 112.50 range respectfully. From an hourly POV, the recent pullback formed an inverse head & shoulders pattern which is a sign of reversal to the upside. Will this break the 112 area or bounce off resistance and continue the swing? Prediction:
DIS will pull back to the neckline (108.50 area) which happens to also be the 50% fib level. If this happens, I will be going in after the first green candle showing a bounce at the golden zone. I will also enter if we cross todays overnight high of 109.69.
Conditions:
- H&S pattern, bouncing off 200 EMA, bouncing off VWAP, Earnings, 100 EMA crossing 200 EMA (daily POV)
Entry:
- Green candle at the 50% fib
Stop:
- 107.47 (Right shoulder)
Target:
- 116.65
Notes:
Divergence: N/A
Pattern(s): Inverse H&S
EMA: Bouncing off 200
Volume: 108.27 area
VWAP: Bouncing off vwap
Overbought/sold: N/A
Fibonacci: N/A
Trade active:
Price indeed came back and bounced off the 50% fib (fairly quickly) as predicted and went up. Looking to take profit in the 112 range either today or tomorrow...hopefully.
If another stock doesn't tickle my fancy by then, I may think about staying in if price action continues beyond previous highs.
If another stock doesn't tickle my fancy by then, I may think about staying in if price action continues beyond previous highs.
Order cancelled:
I saw a profit of 100% so I took it and sold my call on 1/29. I do think it'll reach close to 113 and that's where I'll be watching for it to either make new highs or swing back down forming a channel. If it doesn't break to new highs I'll definitely be looking for SOME sort of pattern to play.
I guess we'll find out next week!
I guess we'll find out next week!
Comment:
One thing I just realized is there is RSI divergence on the daily between 2/8 - 3/1. We might be looking at a double top before a fall to fill the earnings gap.