Walt Disney Co. (DIS) is the Real Money Stock of the Day Friday. Disney reported September-quarter numbers that were better than anticipated and the stock price gapped higher Friday. We reviewed the charts and indicators of DIS Thursday before the numbers were released and concluded that, "Nothing is certain when it comes to investing and traders reactions but my sense of the charts and indicators tell me that DIS is more likely to trade higher in the days ahead. Longs should risk a close below $127 now."
Let's check on the charts again today to see if we can tighten our sell stop.
In this Point and Figure chart of DIS, below, the software still projects a downside price target, but a trade at $142 should change the direction to the upside.
Bottom-line strategy: Maintain longs and raise sell stop protection to $130 now.