Disney Continues The Rally And Almost Reaches A New Historical High

person holding Minnie Mouse headband overlooking castle

Since the crash of March 2020, all stocks have tried to recover what they lost and Disney was no exception. Disney (DIS) did not only recover the lost, but It also reached historic highs. Now, we are going to try to build an impulse from the March 2020 lows with a target around $230. Target measured from 0 to 2019’s high projected from March’s low, equal legs.

Disney Daily Chart  

Disney Daily Chart 1

As we see in the daily chart, the waves ((1)) and ((2)) of the impulse have completed and currently we are building the wave ((3)). We believe that wave (3) of ((3)) is still developing and we need one more high to complete an impulse 1, 2, 3, 4, 5 in red. We expect that the wave 5 in red reaches 190.88, ideally, to end the structure of wave (3) of ((3)).

Disney Daily Chart 2

Last week we expected to continue higher as an impulse to complete the structure of the wave (3). On Monday the market dubiously opened, but as the days passed, it began to gain upward strength and it almost reaches to break to a new historical high.

Disney 30 minutes Chart

Disney 30 min Chart 1

In this chart wave 4 of (3) finished. Disney built 3 waves to the downside ((w)), ((x)), and ((y)), as a double correction. (If you want to learn more about Elliott Wave Theory, please follow this link: Elliott Wave Theory). Last week, Disney broke the high of wave ((i)) as we expected and continue the rally as an impulse structure. The waves (i) and (ii) of ((iii)) were pretty small. Then the stock started to move upside and it made a temporary peak at 179.74 that we labelled as wave (iii) of ((iii)). Then we saw 3 swings down that is wave (iv) and currently we are in wave (v) of ((iii)).

Disney 30 min Chart 2

Thus, in this week we should see a slightly high to complete an extended wave (v) and also complete wave ((iii)). Then we expect a double correction (w), (x), (y) to build wave ((iv)) and bounce from the 177.15 – 179.82 area. This rally should continue to 190.88 target and finish the wave ((v)) and also end the wave 5 in red and wave (3) in the daily chart.

Disclaimer: Futures, options, and over the counter foreign exchange products may involve substantial risk and may not be suitable for all investors. Leverage can work against you as well as for ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.