Technical Analysis – Disney stock cautiously positive; rallies to new all-time high

Anthony Charalambous, XM Investment Research Desk

Disney stock’s recent jump to a fresh all-time high looks to be in line with the bigger bullish picture, however, the move may be running out of steam, as reflected in the Stochastics and the RSI, which have entered the overbought zone and now are starting to turn down.

Despite this, the MACD is distancing itself above its red trigger line, moving deeper in the positive zone. Further backing the positive outlook, is the completed bullish crossover of the 20- and 40-day simple moving averages (SMAs).

To the downside, if the sellers steer below the 147.07 previous high (now-turned-support), the nearby level of 145.37 could then test the drop towards the 140.00 support handle. Moving down, the 136.14 low coupled with the 100-day SMA could apply upside pressure ahead of the congested support region from 133.63 to 130.22. The bears would need to overcome the various durable support levels which coincide with the moving averages in order for the focus to turn to the swing low near the 50.0% Fibo of 127.18.

Alternatively, if the bulls push past the recent all-time high of 150.54, the stock could move to test 154.56 resistance, which is the 138.2% Fibonacci extension of the down leg from 147.07 to 127.48. Overtaking this, the bulls’ next target could be the 161.8% Fibo extension of 159.16.

Overall, the short-term bias is bullish above the 147.07 level, while a shift back below would increase the odds for a neutral-to-bearish bias.