Identifying Disney's Promising Technical Setup Ahead Of Breakout
by Mike Paulenoff
February 11, 2024 • 12:02 PM EST
This past Monday (Feb 5), one of our MPTrader members inquired about Disney (DIS): "Is Mickey and the gang making a comeback?"
Our response: "Technically, the answer is Yes! We can make a compelling argument that DIS has carved-out a 9-month rounded base formation (Inverse Head & Shoulders, anyone?) that for the last several days has been digesting its January gains from 88.69 to 97.93 perhaps ahead of Wednesday's (12/07/24) catalyst: Quarterly Earnings. The current promising technical setup argues that barring a disastrous earnings report or the unveiling of some unknown negative factor, DIS is positioned to react positively to the news, which will trigger an initial pop to 102-104, and if taken out, then toward 112-114 thereafter in a move that will represent a clear indication that Disney's problems are behind it... Last is 96.86..."
Fast-forward to Wednesday afternoon (Feb 7) in the aftermath of earnings: Investors (and the algos) reacted very positively to Disney's quarterly report, and whatever additional forward-looking business nuggets CEO Bob Iger discussed with reporters during his post-earnings interviews. The earnings news morphed into a very bullish catalyst that propelled the stock to a high of 112.77 during Thursday's session, a full 16.4% above where DIS was trading at the time of our post two days earlier, and right in our projected upside Target Window. See our 4-hour chart.
What's next for DIS -- upside continuation or a period of digestion and pullback? Will a pullback represent another buying opportunity?
Join me and our MPTrader member community for our ongoing opportunistic intraday technical and fundamental discussions about DIS and many other individual equity names, as well as the Magnificient 7, Sector ETFs, macro index ETFs ahead of CPI and PPI this coming week, commodities, and Bitcoin.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
Late on Friday, fellow MPTrader member MarkinQueens exclaimed: Mike's XOM (Exxon Mobil) chart from August is working! Last $117.26!Back on August 25th, this is what we discussed about Crude Oil and XOM:Just in case anyone is wondering what the chart of nearby Crude Oil is looking like as we approach the "official" end of summer.
On August 12, 2025, this was my response to an inquiry from an MPTrader member about intense weakness impacting SMR (NuScale Power Corp):SMR (NuScale Power)-- Fellow member Irv66 asked for an update on this modular nuclear reactor manufacturer that blasted-off from 11.08 in early April to 53.50 at the end of July (+382%), but has since been in the grasp of a major correction from 53.50 to 38.33 (-28.6%). My pattern work argues that SMR is nearing key support from 37.50 down to 33.
ARKK (ARK Innovation Fund, ETF)-- Back on August 20, 2025, this is what we discussed about ARKK:Fellow member Pawel has requested an update on Cathie Wood's fund, which in June thrust up and out of a 3-1/2 year base-accumulation period and pattern above 68.40/50 that subsequently climbed to my initial target in the vicinity of 80 (see my attached Daily Chart). Since the 7/21/25 high at 79.
On July 31, 2025, with SLV (Silver ETF) trading at 33.27, this is what we discussed about my technical setup:SLV-- On the subject of tariffs, copper, and silver, Trump extended the tariff deal with Mexico for 90 days, which included steel and copper, but NO MENTION of Silver (so far). Let's notice on my attached 4-Hour chart of SLV that the week-long nosedive from 35.91 to this AM's low at 33.
On February 18, 2025, this is what I posted on MPTrader about KWEB (Chinese Internet ETF) that alerted traders to a potentially explosive setup that should keep KWEB on our radar screens going forward :My attached Daily Chart shows that KWEB is attempting to emerge from a huge, three-year rounded base-accumulation setup that projects much higher prices as the price structure climbs the "recovery wall of worry" in the aftermath of the relentless bear phase from the February 2021 ATH at 104.