There has been a trade set-up that I have been monitoring for The Walt Disney Company (DIS) for approximately 1/2 a year now.  I started discussing the trade set-up for DIS back in this article “2/8/2017 – Walt Disney (DIS) High Confidence Trade Set-Up“.

I wrote another update on the trade set-up on June 16, 2017. This article reviewed the continued progress of the trade set-up for DIS. Access that article here “6/15/2017 – Walt Disney Company (DIS) Trade Set-Up“.

The trade set-up took a little longer than anticipated, however it seems to have worked to perfection.

The Walt Disney Company (DIS)

This first chart for The Walt Disney Company (DIS) is a 1 year daily candlestick chart. It has a Fibonacci Retracement Tool overlaid on DIS’ previous uptrend. Moving averages are also on the chart. Since my June 15, 2017 article, DIS’ share price pulled right into my expected pullback zone and then reversed higher.

One of the uses for a Fibonacci Retracement Tool is to measure for potential support areas during a stock’s pullback or correction. The 50% or 61.8% Retracement Lines are the most common pullback targets. However in strong uptrends that have intentions of going higher, only a 38.2% retracement develops. DIS developed a 50% retracement of its previous uptrend. It looks like a new uptrend has begun.

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I discuss the recent pullback for The Walt Disney Company (DIS) that seems to have started to rebound. Upside price objectives are calculated using Fibonacci Extension Tools and other bullish factors are discussed.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available. The Walt Disney Company (DIS) is not going to stay this low forever. Learn what price targets are most probable for DIS new uptrend.[/s2If][s2If current_user_can(access_s2member_level1)] gap-up (Rising Window candlestick pattern) that developed right after DIS share price reversed from the 50% Retracement Line seems to indicate that its new uptrend is underway.

I have pointed out the first gap-up move several times before. Each one has led to higher share prices and nice trading profits. I see no reason that this time is different.

I had previously discussed a “minimum” trade to the $123 area for The Walt Disney Company (DIS). Now that more time has passed, let’s see if I can add on to my previous outlook and tweak it some.

DIS – 3 Year Weekly

This next chart is a 3 year weekly candlestick chart for The Walt Disney Company (DIS). It shows some longer-term overhead resistance for DIS share price in its attempted rebound.

Since my previous DIS update, more time has passed. This extra time has allowed me to place a second Fibonacci Extension Tool on its chart (the green one). The black Fibonacci Extension Tool from the June update is what provided for my original $123 price target. However, with the placement of the second Fibonacci Extension Tool, there seems to be a nice confluence area around the $144 price level. Looking for a confluence area, the $140 – $144 range looks to be more probable than the $123 range.

Like I have seen with some other large companies so far this earning season, a gap-up above a previous resistance area isn’t out of the question for The Walt Disney Company (DIS). Now that its share price seems to have started a new uptrend, purchasing the dips and trading it upwards becomes a viable option.

Notice where The Walt Disney Company (DIS) found support during its pullback? Yes, it was on the 50% Retracement Line on the daily chart above. But that same area also represents the support area from a 3 Weeks Tight chart pattern. Whomever was accumulating shares when the 3 Weeks Tight chart pattern developed, showed continued support at the same price level.

So far, so good. And now that I’ve set my sights a little higher for DIS share price, let’s see if the Point & Figure charts confirm or conflict with my new price targets.

DIS – Point & Figure Chart

A Point & Figure chart can help provide for a price objective which can either help to confirm your analysis or make you want to re-think your analysis.

The Closing and the High/Low Point & Figure Charts for The Walt Disney Company (DIS) were basically the same. This is the Closing P&F Chart for DIS.

The Closing P&F Chart for The Walt Disney Company (DIS) reflects a bullish $162 price objective. The High/Low P&F Chart reflected a $164 price objective, almost identical.

Am I undershooting DIS new uptrend with my $144 price target? Could be. Only way is to purchase shares and find out. My mom has scaled into her position at this time based on my June 2017 article. She has approximately 22% of her total portfolio in DIS right now. I currently have no position but may look to initiate a long position in the next couple of days below $110 around $109 or lower if it presents itself.

The Walt Disney Company (DIS) Summary

The Golden Cross Trade Set-Up seems like it has worked again as DIS is rebounding from the 200 Day moving average in above average buying volume in the last several trading sessions. A pullback to the $109 area may be you last chance to grab shares at these lower prices. That opportunity may only come one more time and happens tomorrow. Be prepared if you want to be long DIS shares but have not yet purchased any.

With revised price objectives in the $140 – $160 price area, scaling into shares seems like a great idea. DIS is even a dividend payer. Get paid a little extra while waiting for the trade to percolate. It’s time for the percolator.

Good luck trading.

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