Technical Insights for WALT DISNEY CO/THE (NYSE:DIS): Is a Breakout Imminent?

WALT DISNEY CO/THE (NYSE:DIS) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:DIS.

Technical Analysis Observations

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to DIS. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, DIS is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• DIS is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When compared to the yearly performance of all other stocks, DIS outperforms 60% of them, which is more or less in line with the market.
• DIS is part of the Entertainment industry. There are 76 other stocks in this industry, DIS did better than 64% of them.
• DIS is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so DIS is lagging the market.

Our latest full technical report of DIS contains the most current technical analsysis.

How does the Setup look for NYSE:DIS

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:DIS has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, DIS also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 94.92. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 93.21, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DIS in the last couple of days, which is a good sign.

Trading setups like NYSE:DIS

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.