Disney (DIS) Finds Support⎯Eyes Higher Prices

As the market continues to decline, it may be hard to imagine we are still in the midst of a bull market. However, our next trade idea on Disney (DIS) is a bullish one. If you take a look at the daily chart on DIS, you’ll notice a pattern. Do you see it?

Before you go watching the video, I’d like you to pull up the chart and see if you can spot it. Well, if you read on this far ahead, you probably thought the surprise would be given away, not just yet. This pattern is a bullish pattern, but if you’re looking at the DIS chart, you’re likely thinking anything but.

The pattern is a descending wedge, a pattern that only forms after a substantial period of declines. Yes, DIS has hit a rough patch lately, but at least in the short term, the stock found some relief. After bouncing and finding support at the 85 level, DIS climbed all the way back above 90 with some decent volume.

This the kind of move you would like to see if the stock has any hope at making a recovery. Watch for this 90 level to act as support here. If the stock can hold this level and get some help from the rest of the market DIS could be on its way higher. Watch this trade in order to catch some gains to the upside in a market that is being stingy with its bullishness at the moment.

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