Technical Analysis – Disney stock seeks a pivot after new lows
August 29, 2023 12:28 pm
Walt Disney’ stock tumbled to the lowest level since the pandemic crash last Friday before forming a green doji candlestick on Monday around the 82.37 trough.
The stock is hovering at a low level that is considered attractive, and indicators like the RSI and Stochastic oscillator confirm that it may be oversold. On the other hand, the price is still trading below its 20- and 50-day exponential moving averages (EMAs), while two potential resistance lines could still reject any increases at 85.40 and 89.50 respectively.
Should the bulls pierce through the 90.00 psychological mark, they might pick up steam towards the 200-day EMA at 95.40, which was a hurdle back in May. The 38.2% Fibonacci mark of the latest downleg is in the same area. Therefore, a close higher could add fresh bullish fuel to the price, bringing the key 100.00 number and the 50% Fibonacci level next into view.
It’s worthy to note that the market found significant support around the current resistance of 83.95 in December 2022 and in March 2020 at 83.95. If the price stays below this level, the bears could push towards the pandemic low of 79.00. Even lower, the two-year-old downtrend could extend to 76.70, last seen during December 2013-April 2014.
Summing up, Disney’ stock could enjoy some recovery in the short-term, though only a durable rally above the 200-day EMA would brighten the outlook for the market.
Walt Disney’ stock tumbled to the lowest level since the pandemic crash last Friday before forming a green doji candlestick on Monday around the 82.37 trough.
The stock is hovering at a low level that is considered attractive, and indicators like the RSI and Stochastic oscillator confirm that it may be oversold. On the other hand, the price is still trading below its 20- and 50-day exponential moving averages (EMAs), while two potential resistance lines could still reject any increases at 85.40 and 89.50 respectively.
Should the bulls pierce through the 90.00 psychological mark, they might pick up steam towards the 200-day EMA at 95.40, which was a hurdle back in May. The 38.2% Fibonacci mark of the latest downleg is in the same area. Therefore, a close higher could add fresh bullish fuel to the price, bringing the key 100.00 number and the 50% Fibonacci level next into view.
It’s worthy to note that the market found significant support around the current resistance of 83.95 in December 2022 and in March 2020 at 83.95. If the price stays below this level, the bears could push towards the pandemic low of 79.00. Even lower, the two-year-old downtrend could extend to 76.70, last seen during December 2013-April 2014.
Summing up, Disney’ stock could enjoy some recovery in the short-term, though only a durable rally above the 200-day EMA would brighten the outlook for the market.
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