Ichimoku Watch: Walt Disney Displaying Signs of Bullish IntentioUpcoming Earnings Release:
Walt Disney Company (ticker DIS) is scheduled to report earnings on 7 May before the market opens. The consensus EPS estimate for the fiscal quarter ending March 2024 is $1.09. The reported EPS for the same quarter a year prior was $0.93.
Buyers Preparing to Show?
What price action is currently showing is slowing downside momentum. We can see that in recent price action: the downside moves have been weakening, and buying is strengthening. This highlights that a possible breakout to the upside may occur.
It is also clear to see that the Ichimoku Cloud (formed by the Leading Span A and the Leading Span B) is being tested as potential support. However, it may concern some bulls that the Leading Span A has just recently crossed below the Leading Span B, which can be seen as a bearish signal. But it is still early days here. For Ichimoku traders to have more confidence in the Ichimoku Cloud support area, they may wait and see if the conversion line (Tenkan-sen) crosses above the base line (Kijun-sen) before committing to a long position.
Another means of confirmation traders may seek at this point is price closing above the base line or, alternatively, a daily price close above the small falling channel pattern ($111.08 and $114.18). Were this to be accompanied by increasing volume, this would add weight to the possibility of a follow-through.