DIS potential rising triangle I've been analyzing Disney (DIS) on the 4-hour chart, and I see a possible reversal scenario around the $94.50 support level that could lead to a retest of the $97 range, forming a rising triangle pattern.
Here’s what I’m seeing:
Consolidation Below Key Resistance ($96.78 - $97.27):
Right now, Disney is consolidating below the $97 resistance zone, where sellers have been stepping in. This area is a clear horizontal resistance, which is essential for the formation of a rising triangle pattern.
Support at $94.50:
I believe the $94.50 level is crucial because it acted as a strong demand zone previously, with buyers stepping in around mid-October. If Disney pulls back to this level and finds support again, it would confirm the next higher low, which is needed for the rising triangle structure.
There’s an ascending trendline that has been supporting the stock since late September. This trendline is crucial because it confirms the pattern of higher lows. If the stock holds the trendline near $94.50, it would create the next leg up in the triangle.
MACD Divergence:
I noticed some bearish divergence on the MACD, which indicates weakening momentum. This suggests that a short-term pullback to $94.50 could be likely before the stock attempts to push higher.
My thought process for a potential rising triangle:
Pullback to $94.50: I expect the stock to pull back to around $94.50, and if buyers defend that level, it would establish a higher low, keeping the bullish structure intact. This would be the setup for a reversal back to the $97 resistance area.
Reversal to $97 Range: From there, if the price climbs back up, it would retest the $96.78 - $97.27 resistance zone. This would complete the rising triangle pattern, where the price is making higher lows but is consistently facing resistance at that horizontal level.
Breakout Potential: The key here is if the price breaks above $97.27, it would confirm the rising triangle breakout. A successful breakout would likely lead to a move toward $99.00 or even $100.00.
