Disney DIS Surges to Key Price Target Dec 9
Media giant Disney (DIS) surged through a key resistance level at $100 and now achieved a key weekly pivot.
What is it and what’s the plan for trading Disney (DIS) short term right now? Let’s see it in motion!
The company famous for giving us Mickey Mouse formed a rounded reversal on positive divergences – accumulation – in October.
Buyers reversed the stock back into an uptrend, breaking through a key weekly trendline near $95.00.
From there, buyers maintained the momentum as seen with new highs in price, volume, and momentum.
The first reversal target – once price broke above the 200 day SMA – was the $100 per share pivot.
Barely stopping there, buyers triggered a short-squeeze and bullish surge which propelled shares to where we are now – at a critical weekly “make-or-break” pivot.
Here’s the trendline break and newly achieved target as seen best on the Weekly Chart:
It’s been quite the volatile ride for longer-term Disney investors from 2015 to present.
The company isn’t just a cartoon movie creator and theme park operator; it now owns ESPN, ABC, and other media companies.
Fundamentals aside, shares developed a large Descending Triangle pattern at the $90.00 support shelf.
October was a magical time to buy the stock as the Daily Divergence and “Rounded Reversal” price pattern occurred at the critical trendline support of $90.00 per share (a great lesson).
As was expected, shares surged, breaking the trendline to trigger a new bullish wave and reversal of the trend back to bullish (up).
Watch what happens at $105’s target and trade the immediate departure away from this prior-high pivot.
Shares likely continue the bullish campaign toward $120 if above $105 but short-term traders may have success on a potential sell-swing retracement down away from $105.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
Impressive price action in DIS this week (and the market as a whole – have you sen the weekly chart of IWM lately?) . I’ll be curious to see if it can pull through