Disney Macro Looks Dire with Risk of Further 40% DeclinesHi guys! So this is a Pure Technical Analysis on the Macro structure of Disney (DIS).
Macro in that we are on the 1 Month timeframe so each candle is 1 Months worth of price action averaged in.
Just note why i don't ever look at news to influence my trades. We got rejected from our highs in October 2021, Desantos bill signing that sparked the lawsuit stuff happened June 2022.
Prices were already on the decline way before. Just saying. Anyway moving on.
What i want to point out is our current price action.
We are currently BELOW the Major SUPPORT LINE that played support for about 7-8 years.
Being a monthly timeframe, just note we have NOT yet confirmed as our current candle is ongoing.
Ideally We would need to get back ABOVE and confirm Support to prevent further declines.
BUT if we do confirm here its NOT a good look.
BELOW the "The Last SUPPORT Line of Defence" is even way worse.
If we end of Confirming Resistance Below "the Last Line of Defence", we risk almost 44% Price DECLINES back to the highs of a previous consolidation zone or the line labeled "Major Support".
Its because the Rapid Price Increase labeled "Weak Market Structure" has no distinctive/ strong Support zones.
Theres nothing to cushion the eminent Price Declines that may be awaiting us.
Its mainly because we didnt test SUPPORT and have a slow methodical rise in price.
We also recently printed a DEATH CROSS. By the looks of that monster mouth, its a long ways before its momentum fizzles out.
If VOLUME also continues to be on the rise while we have this DEATH CROSS and price declines, aspect more price declines.
And the likely scenario of the DECLINE to "Major Support".
Keep in the back of the mind: This could make for a solid SHORT play once that confirmation below the last line of defence happens.
Anyway look to smaller timeframes for more current price action to see how things shape up for the macro. Keep on the look out for updates in the hourly, daily or weekly timeframes.
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Stay tuned for more updates on DIS in smaller timeframes in the near future.
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DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.