DIS finds buyers again around 132.47
The Walt Disney Company (DIS) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
DIS finished Thursday at 133.41 gaining $0.56 (0.42%), slightly outperforming the Dow Indu. (0.39%). Trading $0.78 higher after the open, Disney was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DIS as at Aug 15, 2019):
Thursday's trading range has been $1.81 (1.36%), that's below the last trading month's daily average range of $2.42. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DIS.
Three candlestick patterns are matching today's price action, the Homing Pigeon and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 132.38 (S1). After having been unable to move lower than 132.68 in the prior session, The Walt found buyers again around the same price level today at 132.47. The last time this happened on Tuesday, DIS actually lost -3.04% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 139.97.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the nearby swing low at 132.26 where further sell stops could get activated. Trading close to June's low at 131.49 we might see further downside momentum if potential sell stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for The Walt. Out of 363 times, DIS closed higher 58.40% 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 61.16% with an average market move of 1.02%.