DIS closes higher for the 2nd day in a row
The Walt Disney Company (DIS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DIS ended the month 4.87% higher at 116.94 after gaining $1.28 (1.11%) today, outperforming the Dow Indu. (0.44%). Trading up to $1.10 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 116.29, the market confirmed its breakout through the prior session high after trading up to $0.76 above it intraday.
Daily Candlestick Chart (DIS as at Jul 31, 2020):
Friday's trading range has been $2.93 (2.54%), that's slightly above the last trading month's daily average range of $2.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 113.37 and 117.42 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 24th, DIS actually lost -1.11% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the nearby swing high at 119.35 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for The Walt. Out of 339 times, DIS closed higher 52.80% 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 56.93% with an average market move of 0.57%.