Shares of $DIS, the Walt Disney Co., closed today’s trading session around the high for the day and the week. I view each day’s trading as a struggle, between buyers and sellers, for control of price direction. This positive character of the behavior of price movement registered a strong red candle on my daily chart (see below).
When trading resumes, Disney shares are likely to extend higher out of their late-July consolidation. Today’s positive red candle, appearing at the apex of a triangular continuation pattern, implies the likelihood, but not the certainty, of a coming carpet ride higher. The orderly climbing lines of average price movement exert the influence of underlying support (demand). Former resistance (supply) around the June high now also represents support.
I tune out all the noise about streaming wars, the battles raging for media-obsessed consumers, and focus on the message market price action is broadcasting to us.
Buyers are stronger than sellers. That, more than Disney’s CEO, Bob Iger, being a graduate of the same high school as me (I guess it is a small world after all), tells us sensible speculators may soon be booking a wonderful, whole new world of gains on a breakout to the upside.
Don’t be surprised by swings next week around Disney’s closely-watched quarterly earnings report (after the bell on Tuesday). Keep your eyes on the prize (your trading objective) and note how price behaves at our key areas of technical support and resistance.
Disney closed today at $114.06, looking higher. I see underlying support at $108-$112 and $102-$107. Overhead resistance resides at $114.68-$115 and $118-$121. I am anticipating a move to our secondary resistance area.
Sarnoff’s bottom line: Buyers have the edge in Disney until proven otherwise by price.
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