Trade of the Day

Walt Disney Company (NYSE: DIS)

(Current Price: US$91.76) – TECHNICAL BUY

Buy price: US$91.76     Stop loss: US$86.00   

Take profit 1: US$102.00    Take profit 2: US$108.00

The price broke out of a descending wedge formation on 10^th August, coupled with bullish divergence shown on the Moving Average Divergence Convergence (MACD) technical indicator which indicates increasing bullish momentum building when price made lower lows previously.

Should the price continue the bullish momentum, it could retest the first resistance level at US$102.00, which is confluent with swing high horizontal resistance formed in March and April this year. It could then head to the next resistance level at US$108.00, confluent with a previous horizontal support level it broke down of in February this year and a potential retest of the downtrend resistance line.

Expected timeline of the trade is 4-12 weeks from the date of report issuance.