DIS closes within prior day's range
The Walt Disney Company (DIS) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DIS finished Monday at 128.79 losing $1.14 (-0.88%), significantly underperforming the Dow Indu. (1.3%). Trading $1.57 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on August 7th, DIS lost -0.88% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DIS as at Aug 10, 2020):
Monday's trading range has been $2.83 (2.18%), that's slightly below the last trading month's daily average range of $2.87. 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 higher than usual for DIS.
Prices are trading close to the key technical support level at 127.82 (S1). The stock ran into sellers again today around 131.32 for the third trading day in a row after having found sellers at 131.94 in the previous session and at 131.63 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 120.02.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 131.94 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for The Walt. Out of 494 times, DIS closed higher 57.89% 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 60.53% with an average market move of 0.77%.