Disney (SAY) stocks were higher in early trading Friday, adding to strong gains recorded yesterday after the entertainment giant exceeded Wall Street quarterly estimates and provided an optimistic long-term outlook.

The company, which also plans to redeem $3 billion from its stock over next year, plans adjusted to single digits earnings per share (EPS) growth in fiscal 2025 and double-digit growth in fiscal 2026 and 2027, driven in part by the strength of the entertainment conglomerate’s streaming business, which reported revenue of $321 . operating profit during the September quarter.

Disney shares, which gained 6% yesterday, were up another 3% in early trading Friday, to around $112. The stock has gained 21% so far in 2024, trailing the S&P 500’s 25% return over the same period.

Below we take a closer look at Disney’s chart and use technical analysis to highlight key post-earnings price levels to watch.

The escape from the pennants accelerates

Disney shares topped a pennant pattern last week, with bullish momentum accelerating after the entertainment giant’s better-than-expected quarterly results.

Above all, above average volume supported the upward movement, indicating the purchase of stakes from larger market players, such as institutional investors and asset managers.

Furthermore, the relative strength index (RSI) confirms bullish price momentum with reading above 60, although indicator sits below overbought levels, which gives the stock the opportunity to test higher prices.

Let’s identify three key overhead levels on Disney’s chart that investors could watch and also highlight one major item. support zone that can come into play if the stock undergoes a reversal.

Key Overhead Levels to Watch

First, it is worth watching how the stock reacts to the $123 level. This location, which is currently located just above the closely guarded site 200-day moving averagecould find resistance from a trend line that connects a comparable range price evolution on the chart between July 2020 and March of this year.

A close above this level could see shares rise to around $137, an area of ​​the chart where investors could place sell orders around August 2020. swing high and January 2022 swing low.

Further buying could propel shares into the $153 region, an area about 40% above Thursday’s close likely to attract selling pressure near the December 2019 and February 2022 highs. counter-trend peak.

Major support area to watch

If Disney stock experiences a reversal, investors should follow the $85 level. This location on the chart would likely attract buying interest near a multi-year horizon. horizontal line which connects the pandemic-era low to the significant lows of December 2022 and August of this year.

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