DIS closes above its opening price after recovering from early selling pressure
The Walt Disney Company (DIS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
DIS finished the month -4.94% lower at 111.51 after edging lower $0.01 (-0.01%) today, underperforming the Dow Indu. (0.85%). Trading up to $1.57 lower after the open, the market managed to reverse during the session as bulls took control ending the day above 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 Jun 30, 2020):
Tuesday's trading range has been $2.12 (1.9%), that's far below the last trading month's daily average range of $3.64. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DIS. Prices continued to consolidate within a tight trading range between 108.02 and 112.05 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on February 24th, DIS actually lost -3.62% on the following trading day.
Prices are trading close to the key technical resistance level at 112.25 (R1). After having been unable to move above 111.57 in the prior session, Disney ran into sellers again around the same price level today, missing to move higher than 112.05.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 108.02 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for The Walt. Out of 50 times, DIS closed higher 62.00% 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 56.00% with an average market move of 0.77%.