Technical Levels For Disney Traders To Watch
Walt Disney Company (NYSE: DIS) shares are trading solidly in the green Monday. Here are some technical levels to watch in the stock.
The 15-minute chart above shows that Disney is trading in what technical traders would call a channel. The bottom of the channel is a potential support level near the $184 mark.
The top of the channel shows a potential level of resistance near $200.
The support level occurs at the level where the price has previously been unable to cross underneath, while the resistance level comes at a place in past chart history where the price has been unable to cross over.
The short-term bullish technical trader may like to see the price cross above the resistance level with a period of consolidation before a further move to the upside.
The short-term bearish technical trader may like to see the price cross below the short-term support and consolidate before a further downward move.
The daily chart above shows there are multiple key levels, including a potential resistance and two potential support levels. The resistance level is $200, the same as the short-term level.
The first potential support level comes near a price of $184, as this is a place that was previously held as a resistance level.
This speculative resistance level broke and retested as support,
and could possibly retest as support again in the future.
If the stock were to break the support and fall further, it may not find support again until the price is near the $170 level. This level was a previous resistance and has held up as a support level following a break and retest.
As with the short-term, the bullish technical trailer would like to see the resistance break with a period of consolidation before a potential upward move.
The bearish technical trader may like to see the support level break for the period of consolidation before a further downward move. They would also like to see the second area of support fail to hold for a possible further downward move.
Disney is trading with a market cap of $341 billion.
DIS Price Action: Disney shares were trading 5.51% higher to $200.46 at last check Monday.
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