DIS finds buyers around 131.40 for the forth day in a row


The Walt Disney Company (DIS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team

Highlights

DIS breaks back above 20-day moving average
DIS finds buyers around 131.40 for the forth day in a row
DIS closes below its opening price unable to hold early session gains
DIS stuck within tight trading range
DIS closes within previous day's range after lackluster session

Overview

DIS finished Wednesday at 132.09 gaining $0.85 (0.65%) on low volume, outperforming the Dow Indu. (0.13%). Trading $1.45 higher after the open, Disney was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (DIS as at Sep 16, 2020):

Daily technical analysis candlestick chart for The Walt Disney Company (DIS) as at Sep 16, 2020

Wednesday's trading range has been $2.22 (1.68%), that's below the last trading month's daily average range of $3.14. 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 130.90 and 133.62 where it has been caught now for the last three trading days.

Three candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Gravestone Doji which are both known as bearish patterns and one neutral pattern, the Doji.

The Walt managed to close back above the 20-day moving average at 131.92. When this moving average was crossed above the last time on August 5th, DIS gained 2.52% on the following trading day. The share was bought again around 131.40 after having seen lows at 131.01, 130.90 and 131.09 in the last three trading sessions. Obviously there is something going on at that level.

Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

Selling might speed up should prices move below the nearby swing low at 130.90 where further sell stops could get triggered. As prices are trading close to September's low at 129.42, downside momentum might accelerate should the stock mark new lows for the month.

Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for The Walt. Out of 34 times, DIS closed higher 64.71% 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 58.82% with an average market move of 2.20%.


Market Conditions for DIS as at Sep 16, 2020

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