Stock of the Day: Walt Disney

In today’s analysis we have an instrument which requires no introduction – Walt Disney.

The situation after yesterday’s session looks good, which may spark some optimism for today’s session. What is so special on this chart that got our attention?

It is a nice looking flag pattern (blue lines) which has been present on the chart since the beginning of March. A few days ago, the price escaped from the flag to the upside, which in theory brought us a buy signal.

As good as it may sound, we still need to be careful here. The upswing after the breakout was not so strong. In fact, the price reversed to test the upper line of the flag. And that brings us to the situation seen on the chart now, as yesterday the price bounced from the upper line of the flag, confirming that line as a support.

That is positive and should be followed by a further upswing. If you are not entirely convinced we do not blame you and it may be a good option to wait for the breakout of the horizontal resistance of 178.5 USD (green).
The price closing the day above that level would be a very strong buy signal that should not be ignored.