Stock of the day: The Walt Disney Company

In today’s analysis, we turn our attention to Disney, which delivered better-than-expected earnings yesterday — and the market rewarded it handsomely. The stock surged over 10%, closing firmly above the $100 mark, marking a key psychological and technical threshold.

From a technical perspective, this move adds credibility to an ongoing long-term reversal narrative. The most crucial development in recent months was the successful defense of the horizontal support near $80, marked with an orange line on the weekly chart. This level, dating back to 2020, has held up during repeated tests and now appears to be a solid foundation for further upside.

What stands in the way of a confirmed long-term buy signal are two descending resistance trendlines, drawn as pink downtrend lines on the chart. These lines have been guiding the broader bearish trend in Disney for quite some time. We’re still below them, and they represent the final obstacle before a major bullish breakout can be declared.

This is a weekly chart, so we may not see immediate action. However, if Disney continues to build momentum and manages to break above these trendlines, it would constitute a strong long-term signal to buy. The earnings beat has laid the groundwork — now it’s up to the technicals to confirm the breakout.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-the-walt-disney-company-1