By: Christian Tharp, CMT
It’s no secret that Disney (DIS) has been on the struggle bus for quite sometime now, finally hitting a 52-week low last week. Now, traders and investors brace for another week of what looks to be a bit more rough sledding for the media company.
After breaking a key support level and yearly low, the media giant looks to want to go lower given the state of the overall market and the higher volume that came with this push lower through that key support level. Traders looking for a short play might want to keep this stock handy as we enter the new week of trading.
To play devil’s advocate for just a minute and to examine what could invalidate this trade, a push above and close back above this 85 mark could signal a false breakdown and lead to higher prices, even if only temporarily. Still, odds seems to favor a bit more of a slide here given the trend and manner in which that level was broken.
for those who have a bit longer of a time horizon on their trade could enter a swing here with a stop just above the 85 mark, managing risk for the event this was a false breakdown. Those who…
Watch the full video at WEALTHPOP.com