Double Bottom in Disney?
Walt Disney has been under pressure for the last year. But now it may have formed a bullish reversal pattern.
DIS dove toward $129.30 on January 24 during the S&P 500’s initial swoon this year. It retested and held that level on Tuesday, resulting in a potential double-bottom pattern.
Next, the pullback represents a retracement of the entire rally that occurred in late 2020 and early 2021 after Pfizer’s vaccine news spurred confidence in the economy reopening.
Third, stochastics have dipped to an oversold condition.
The trend remains bearish and sentiment is negative following the spike in gasoline and jet-fuel prices. However this double-bottom pattern could make traders start to think about a bounce.
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DIS dove toward $129.30 on January 24 during the S&P 500’s initial swoon this year. It retested and held that level on Tuesday, resulting in a potential double-bottom pattern.
Next, the pullback represents a retracement of the entire rally that occurred in late 2020 and early 2021 after Pfizer’s vaccine news spurred confidence in the economy reopening.
Third, stochastics have dipped to an oversold condition.
The trend remains bearish and sentiment is negative following the spike in gasoline and jet-fuel prices. However this double-bottom pattern could make traders start to think about a bounce.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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