Stock of the day: Disney

By Tomasz Wisniewski|

Published: January 04 2023, 10:08 GMT+0

Stock of the day: Disney


In today’s stock of the day, we will take a look at Disney where we can see that buyers are getting ready to start a new bullish trend. Technical analysis favors the buyers and all we need for a proper, long-term buy signal is the last push of just a few dollars.

In the past two years, Disney has pretty much collapsed. How else we can name the loss of more than half of its value? In the last half a year, the price created a falling wedge pattern (green) and now we are at the end of this formation. The fact that we are at the end implies a future breakout. Why do we think that the breakout will happen to the upside? First of all, in the last two weeks, the price created two hammers (blue), i.e. candles with long tails, which shows the rejection of the lower prices. In addition, this was all happening on the key, long-term horizontal support around 84 USD (yellow) established in 2020.

The buy signal will be triggered when the price closes the day above the upper line of the wedge. Until then, the best option would be to wait, as we do not want to be guessing while trading and additional confirmation is always welcome.