DISNEY (DIS) IS NEARING MAKE OR BREAK POINT
On March 28, 2017 the Disney (DIS) 200 day moving average (MA) crossed above the 250 day MA. Historically this has occurred 27 times. When this happens, the stock does not always continue to rise. It has a median gain of 2.679% and maximum gain of 13.312% over the next 10 trading days.
When we take a look at other technical indicators, the relative strength index (RSI) is at 65.999. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is slightly looking for direction but trending upward. Per the RSI, DIS has retreated from the overbought level and is moving up.
The true strength index (TSI) is currently 22.1845. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is looking for direction, but has recently began to move up.
The positive vortex indicator (VI) is currently 1.0578. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is trending upward, but is stagnating.
Considering the moving average crossover, RSI, TSI, and VI levels, the overall near-term stock direction appears to be slightly trending upward. Based on historical movement compared to current levels and the current technical wedge pattern, the stock could gain at least another 1.50% over the next two weeks. Today the stock hit its 52 week high. The question is what will be the next resistance level? The stock has been in an incredibly narrow upward trend channel since January of 2017. DIS could quickly hit the top of wedge and significantly reverse downward. Another resistance level could be 114.75 (which is the 1.50% gain from today's close) which was hit multiple times from October – December of 2015 and is attainable in its current narrow trend channel. Another level could be 120.65, last achieved November 23, 2015, or the stock could test its all-time high of 122.08 from August 4, 2015.
When we take a look at other technical indicators, the relative strength index (RSI) is at 65.999. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is slightly looking for direction but trending upward. Per the RSI, DIS has retreated from the overbought level and is moving up.
The true strength index (TSI) is currently 22.1845. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is looking for direction, but has recently began to move up.
The positive vortex indicator (VI) is currently 1.0578. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is trending upward, but is stagnating.
Considering the moving average crossover, RSI, TSI, and VI levels, the overall near-term stock direction appears to be slightly trending upward. Based on historical movement compared to current levels and the current technical wedge pattern, the stock could gain at least another 1.50% over the next two weeks. Today the stock hit its 52 week high. The question is what will be the next resistance level? The stock has been in an incredibly narrow upward trend channel since January of 2017. DIS could quickly hit the top of wedge and significantly reverse downward. Another resistance level could be 114.75 (which is the 1.50% gain from today's close) which was hit multiple times from October – December of 2015 and is attainable in its current narrow trend channel. Another level could be 120.65, last achieved November 23, 2015, or the stock could test its all-time high of 122.08 from August 4, 2015.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
