Hello traders and investors! Let’s talk about DIS today, as it is flying after earnings, and do a complete Multiple Time Frame Analysis (MTFA) on it.
When we see a movement like this, it is important to not get emotional and euphoric, and see the situation as it is. As a trader and long-term investor in DIS, I’m very pleased with this movement, however, is it the right time to buy it? No.
The reason is very simple: DIS just hit a target, which is the gap at $ 155.18. This point is supposed to work as a resistance in the short-term, and the odds are that DIS will do a pullback from here. If not a pullback, at least a sideways correction.
So, what to do with DIS? It depends on your strategy. If you are a short-term trader I think it is time to book profits, if not totally, at least partially. If you plan on buy DIS, or add positions, wait for it to get near a support level again. Remember what I always tell you guys: Buy near supports. This way, you’ll maximize your Risk/Reward.
If DIS drops to its 21 ema, that’s ok. To me, would be great to see DIS repeating what GOOG did after its earnings:
The bias would still be bullish, and it would be a second chance to add positions here. I say this only because I still believe DIS will fill all its previous gaps:
This reaction came in just in time, as in the weekly chart DIS filled a gap from Nov 2020, and found a very nice support level there, before it did a classic Hammer candlestick pattern:
Even with the possibility of a pullback in the short-term, DIS is doing a very good reaction in the daily chart, and we have two other gaps at $ 173 and $ 182, which are targets of this reversal movement. The weekly chart reinforces this idea of a pullback in the short-term, as DIS just hit its 21 ema there, and this might be another resistance for us, along with the gap area in the 1h chart.
It will probably take a few months to recover, but the signs are looking good. To me, DIS is doing what I like to call “gap reversal ritual”, a pattern that never failed me before, and I talked about it in a very old analysis I did on NVDA, last year (link below this post).
Remember to follow me to keep in touch with my daily analysis on stocks and indices. Let’s keep our eyes on DIS, as probably we’ll see more opportunities here soon.
All the best.
When we see a movement like this, it is important to not get emotional and euphoric, and see the situation as it is. As a trader and long-term investor in DIS, I’m very pleased with this movement, however, is it the right time to buy it? No.
The reason is very simple: DIS just hit a target, which is the gap at $ 155.18. This point is supposed to work as a resistance in the short-term, and the odds are that DIS will do a pullback from here. If not a pullback, at least a sideways correction.
So, what to do with DIS? It depends on your strategy. If you are a short-term trader I think it is time to book profits, if not totally, at least partially. If you plan on buy DIS, or add positions, wait for it to get near a support level again. Remember what I always tell you guys: Buy near supports. This way, you’ll maximize your Risk/Reward.
If DIS drops to its 21 ema, that’s ok. To me, would be great to see DIS repeating what GOOG did after its earnings:
The bias would still be bullish, and it would be a second chance to add positions here. I say this only because I still believe DIS will fill all its previous gaps:
This reaction came in just in time, as in the weekly chart DIS filled a gap from Nov 2020, and found a very nice support level there, before it did a classic Hammer candlestick pattern:
Even with the possibility of a pullback in the short-term, DIS is doing a very good reaction in the daily chart, and we have two other gaps at $ 173 and $ 182, which are targets of this reversal movement. The weekly chart reinforces this idea of a pullback in the short-term, as DIS just hit its 21 ema there, and this might be another resistance for us, along with the gap area in the 1h chart.
It will probably take a few months to recover, but the signs are looking good. To me, DIS is doing what I like to call “gap reversal ritual”, a pattern that never failed me before, and I talked about it in a very old analysis I did on NVDA, last year (link below this post).
Remember to follow me to keep in touch with my daily analysis on stocks and indices. Let’s keep our eyes on DIS, as probably we’ll see more opportunities here soon.
All the best.
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