DIS broke a bear-flag on the daily chart today, to continue what looks like a bearish trend on the weekly chart.
DIS – Weekly Chart
Despite traders that come on the TV and talk about buying DIS below $100 as a good entry point for swing trades, I just don’t see the same risk/reward as they do. To me, the broadening pattern to the upside on the weekly chart has been decisively broken and until that chart starts looking better, there is no need to look to swing long DIS.
The relative-strength vs the SPY ETF indicator (right chart) is breaking to new lows, and that to me confirms to stay away from DIS in terms of long swing trades.
DIS – Daily Chart
Bounces happen during bigger trend moves lower … any oversold bounces in blue-chip stocks, especially in names as iconic as DIS is, can typically last several days. Eventually, however, the bigger more dominant trend takes over and price will break out of these possible bear-flags price patterns.
Cheers … Leaf_West