WALT DISNEY CO/THE is showing promising signs of setting up for a breakout.

WALT DISNEY CO/THE (NYSE:DIS) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:DIS.

Technical analysis of NYSE:DIS

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 7 out of 10 to DIS. In the last year, DIS was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• DIS is one of the better performing stocks in the Entertainment industry, it outperforms 71% of 72 stocks in the same industry.
• 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 comparing the yearly performance of all stocks, we notice that DIS is one of the better performing stocks in the market, outperforming 83% of all stocks. However, this overall performance is mostly based on the strong move around 10 months ago.
• DIS is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so DIS is lagging the market slightly.

For an up to date full technical analysis you can check the technical report of DIS

Why is NYSE:DIS a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:DIS exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

DIS has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 111.34, a Stop Loss order could be placed below this zone.

How to trade 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.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.