Technical Analysis – Disney stock bounces off 29-month low

Disney's share price has been in a sustained downtrend since the beginning of the year, but lately it is exhibiting some signs of recovery after rebounding from the 29-month low of 90.00. Hence, the upcoming earnings release on Wednesday could potentially enable the stock to extend its recent upside impetus.

The short-term oscillators suggest that near-term risks are tilted to the upside. Specifically, the MACD histogram is currently above both zero and its red signal line, while the RSI is flatlining above its 50-neutral threshold.

Should buying interest intensify further, the May peak of 113.00 could act as immediate resistance. Piercing through this zone, the bulls could aim for 116.50 before the spotlight turns to the 129.00 region. Even higher, the price could encounter strong resistance at the 144.00 barrier.

On the flipside, any downside moves might initially stall at the recent low of 105.00. Sliding beneath that floor, the 50-day simple moving average (SMA), currently at 101.00, could come under examination. Failing to halt there, the price could descend towards the 29-month low of 90.000.

Overall, Disney’s stock price appears to be gaining momentum ahead of its earnings report. However, any negative surprises could erase the stock’s recent rebound.

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