DIS closes above its opening price after recovering from early selling pressure
The Walt Disney Company (DIS) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
DIS finished the week -1.89% lower at 112.61 after gaining $1.46 (1.31%) today, slightly outperforming the Dow Jones (1.15%). Trading up to $0.74 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, DIS actually lost -3.45% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DIS as at Oct 12, 2018):
Friday's trading range has been $2.04 (1.82%), that's slightly above the last trading month's daily average range of $1.96. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DIS.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 111.23 earlier during the day, the market bounced off the key technical support level at 111.72 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 114.12 (R1). After having been unable to move above 113.25 in the prior session, Disney ran into sellers again around the same price level today, missing to move higher than 113.27.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Walt Disney. Out of 407 times, DIS closed higher 58.97% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.99% with an average market move of 0.77%.