The Walt Disney Co. is a diversified international family entertainment and media enterprise. It operates through the following segments: Disney Media and Entertainment Distribution and Disney Parks, Experiences and Products.
Take a look at the 1-year chart of Disney (DIS) below with added notations:
Chart of DIS provided by TradingView
DIS has tested its $90, 52-week low support (green) on two separate occasions over the past few months. In addition, the stock has tested $102 as resistance (red) twice in recent weeks. At some point in the future, DIS will break either the $90 level or the $102.
The Tale of the Tape: DIS has major support at $90. A trader could enter a long position at or around the mark, or on a break above $102, with a stop placed under the level of entry. If the stock were to break below the support, a short position could be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Good luck!
Christian Tharp, CMT