Technical Analysis – Disney stock jumps above SMAs ahead of earnings
May 10, 2023 10:28 am
Disney’s stock attempted a recovery after a disastrous 2022 in which the price lost almost half of its value. However, the 2023 rally paused in mid-February and the price erased most of its gains, while it has been stuck within a tight range in the past month.
The momentum indicators currently suggest that near-term risks are tiled to the upside. Specifically, the stochastic oscillator is ascending after posting a bullish cross and the MACD is holding above both zero and its red signal line.
Should the price manage to break above its rangebound pattern, the September 2022 high of 108.70 could prove to be the first obstacle for buyers to clear. Breaking above that zone, the price could ascend towards 113.40 or higher to test the 2023 peak of 117.70. A violation of the latter could open the door for the August 2022 high of 126.40.
Alternatively, bearish actions might send the price to test 96.50, which is the lower end of the recent sideways pattern. Dipping lower, the stock could meet support at the March low of 90.35 before 86.20 comes under examination. Failing to halt there, the 2022 bottom of 83.97 may curb further declines.
In brief, Disney’s stock managed to cross above both its 50- and 200-day simple moving averages (SMAs) but remains stuck within a tight range. Therefore, an upbeat earnings report later today could prove to be the catalyst behind a bullish breakout.
Disney’s stock attempted a recovery after a disastrous 2022 in which the price lost almost half of its value. However, the 2023 rally paused in mid-February and the price erased most of its gains, while it has been stuck within a tight range in the past month.
The momentum indicators currently suggest that near-term risks are tiled to the upside. Specifically, the stochastic oscillator is ascending after posting a bullish cross and the MACD is holding above both zero and its red signal line.
Should the price manage to break above its rangebound pattern, the September 2022 high of 108.70 could prove to be the first obstacle for buyers to clear. Breaking above that zone, the price could ascend towards 113.40 or higher to test the 2023 peak of 117.70. A violation of the latter could open the door for the August 2022 high of 126.40.
Alternatively, bearish actions might send the price to test 96.50, which is the lower end of the recent sideways pattern. Dipping lower, the stock could meet support at the March low of 90.35 before 86.20 comes under examination. Failing to halt there, the 2022 bottom of 83.97 may curb further declines.
In brief, Disney’s stock managed to cross above both its 50- and 200-day simple moving averages (SMAs) but remains stuck within a tight range. Therefore, an upbeat earnings report later today could prove to be the catalyst behind a bullish breakout.
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