A critical pivot point is being established on Disney’s chart. After taking a brutal beating all through 2022 it has been fighting to find support and have set up a level that could indicate a very big next move. As stocks get pulled by those expecting them to go higher and those expecting them to drop, you start to see the range build out that shows the fulcrum of that lever. Take a look at the chart.
Bears definitely had control during the drop, but then they give up a little as the stock price levels off. This is a classic sign that a move is setting up. The overall trend is still down, but the momentum is not nearly as strong. This means it is more likely that the price could reverse.
If it breaks the triple bottom it has set up, it could signify a sharp drop down, but if the fans of Disney win and pull it out of the pennant shape to the upside, it could be a rally. This is definitely a stock to keep on the radar as we watch for that clear sign that shows who is taking control.
As we keep working to build a stable of stocks with potential, it is always great to spot the bigger set ups like these to keep an eye on.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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