• Chart of the Day: The Walt Disney Company (DIS)

    by  • September 26, 2013 2:26 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of The Walt Disney Company (DIS) which operates as an entertainment company worldwide.  Its Media Networks segment engages in broadcast television network, television production and distribution, television stations, broadcast radio networks and stations, and publishing and digital operations.

    Ticker:  The Walt Disney Company (DIS)

    What I Am Looking At:

    • DIS has been a strong outperformer this year but has been mostly range bound past 5 months
    • Bullish Inverted Head & Shoulders pattern in the final stages of development as right shoulder is currently being carved out, could act as a continuation pattern on breakout
    • Shares bouncing from the 30 percent year-to-date level
    • Pulling back to the site of peak call open interest for the October and November series, could act as a support area
    • Relative Strength Index falling to the 50 area which may indicate a bullish oversold reading
    • Short interest has been mostly declining but the short interest ratio stands at 5.8 indicating nearly 6 days to cover
    • Unconfirmed earnings release November 6th


    Conclusion:  Low-risk buy entry at current level with a stop beneath right shoulder, just under $64

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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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