DIS dominated by bears dragging the market lower throughout the day
The Walt Disney Company (DIS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DIS ended the week -1.04% lower at 139.55 after losing $1.35 (-0.96%) today, underperforming the Dow Indu. (-0.09%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 140.82, the stock confirmed its breakout through the previous session low after trading up to $1.69 below it intraday.
Daily Candlestick Chart (DIS as at Feb 14, 2020):
Friday's trading range has been $2.06 (1.46%), that's slightly below the last trading month's daily average range of $2.53. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DIS.
One bearish candlestick pattern matches today's price action, the Black Candle.
Disney closed back below the 100-day moving average at 140.07 for the first time since January 31st. When this moving average was crossed below the last time on January 27th, DIS actually gained 1.82% on the following trading day.
The Walt shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's low at 134.83, downside momentum could accelerate should the market break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for The Walt. Out of 251 times, DIS closed higher 56.97% 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 63.75% with an average market move of 1.07%.