The range for shares of Disney (DIS) has been well defined for months.
The daily chart, below, shows most of it, between the $108 and $117 level. Each time DIS goes to $108, it bounces. Up to $117, it falls down.
We can see the cloud pretty much lives in that range between the yellow bars. But this time we think there is a chance for the stock to break free and move upward.
Simply put, the energy created in this latest move up from March has strong volume associated with it, and any pullback is likely to be shallow.
Moving Average Convergence Divergence (MACD) is on a strong buy signal here, and notice the cloud has now twisted green and looks ready to rise further.
The Relative Strength Index is strong and due for a pullback, which may be coming. That would be a good time to pull the trigger and add more shares.
This commentary was originally sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.