DIS on support of trendline and 21-emaHello my young padawans. Behind the scenes of the EV frenzy, biotechs, and SPACS the good old DIS has discretely (maybe no so discretely if you look at the past month but sort of behind the scenes) made its move up and reached new ATH on the hopes of vaccine and prophylactics, and other branches of the conglomerate such as Disney+. If you have been buying throughout the pandemic like I did you should be sitting very comfortably now.
It seems though that the spike up lost a little of its steam. After the peak DIS dropped a little and has been trading sideways for a few days. Today it breached the long term trendline (yellow) and found support on the 21-ema on the daily. The price closed above the trendline, which is a good sign but other indicators are not very positive:
1. MACD is curling down with bearish crossover of MA and signal;
2. ADX is curling down fast as well which shows the trend is getting weaker;
3. +DI and -DI are converging bearish (red line moving up and green line moving down; quite sharply actually)
4. There is a gap that has not been filled yet
This doesn't mean the price will go down but there is a slight bearish bias at the moment. A pullback would be an opportunity to start a position of add more if you already have one, or at least that is what I am doing.
Safe trades!
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***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
