I’ve said it before but it bears repeating, 2019’s magical ride for Walt Disney (NYSE:DIS) investors isn’t finished. And with the price chart fully supporting admission for bulls, it’s time to buy DIS stock right now. Let me explain.
It has been an entertaining, adrenaline-pumping breakout year off and on the price chart for DIS stock. From the closing of Disney’s 20th Century Fox acquisition, continued box office success courtesy of Avengers: Endgame and Aladdin, as well as the company’s streaming Disney+ platform coming to a living room near you later this year, there’s a lot to like about DIS stock these days and for many more to come.
But that’s not all Disney has up its sleeve either.
The House of Mouse’s latest offering and one sure to be a massive hit is its Star Wars: Galaxy Edge attraction debuting Friday at Disneyland in California. Later this summer the company’s crown jewel Disney World theme park in Orlando, Florida will also launch its own Star Wars Land.
Bottom-line, Disney’s massively successful and dominant theme park business is about to look even more out-of-this-world for DIS stock investors given the tens of millions of passionate Star Wars fans of all ages. And for those bulls looking to buy shares, the price chart in Disney stock looks great today.
DIS Stock Weekly Chart
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No doubt, it has been a nice ride for DIS stock investors in 2019. Shares are up 20% with gains helped along by a breakout from a three-year long triangle pattern. But as the weekly chart also shows, Disney stock had been enjoying a much stronger performance. At its highs in April shares were up nearly 30%.
But rather than believe that DIS stock has topped, there’s reason to see even higher highs courtesy of today’s daily chart.
DIS Stock Daily Chart
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Over the past month, DIS stock’s pullback has yielded a constructive looking double-bottom.
The pattern has been built slightly above the 38% retracement level, as well as a bullish gap triggered by roll-out news for Disney+ back in the first half of April.
With stochastics signaling an oversold crossover and shares confirming a pattern low in Thursday’s early going, it’s time to buy DIS stock today.
For investors that are agreeable, since this is a technical entry, the exit should also be tied to Wednesday’s low of $130.78. With roughly 1% of trade risk that’s attractive off and on the price chart. The strategy also keeps the proverbial powder dry in the event those villainous bears take shares to price levels that are really out-of-this-world for bargain hunters.
Disclosure: Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
