DIS Long after Selloff?

Nov 26, 2021

DIS has sold off heavily post earnings. It is understood to be overextended to the downside if RSI reads below 30. The RSI is currently showing a reading of about 24. On the weekly chart, we are resting on the 100ma (~$150). I believe if buyers step in, shorts will begin to cover causing a relief rally. Historically, when DIS has shown an RSI reading below 25 near support, it has produced an upside move of about 6% off the lows. A 6% bounce from current levels is around a $160 price target. I would wait for a confirmation before going long such as a close above the 5ema.

Dec 8, 2021

Trade active

Closed above the 5ema on Dec 6 (~$150). Currently trading at 153 into the 20ma. 160 is still possible but expect some consolidation in the process.