DIS closes higher for the 3rd day in a row
The Walt Disney Company (DIS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DIS finished Thursday at 105.36 gaining $4.63 (4.6%), strongly underperforming the Dow Indu. (6.38%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DIS as at Mar 26, 2020):
Thursday's trading range has been $6.93 (6.87%), that's slightly below the last trading month's daily average range of $7.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DIS.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, DIS gained 2.66% on the following trading day.
The Walt managed to close above the 20-day moving average at 103.32 for the first time since February 20th. Prices are trading close to the key technical resistance level at 111.58 (R1).
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for The Walt. Out of 159 times, DIS closed higher 54.09% 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 59.12% with an average market move of 1.05%.