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| DIS Daily Chart |
There was discussion on the blog about DIS while the government employees were on "vacation" back around 10/3. It was suggested that the 50 day sma would be a good place to look for support and if it failed to hold then the position should be stopped out. Well, that trade would have ended with a small loss on 10/9. That day the stock tested Carter Worth's "smoothing mechanism" (aka the 150 day sma) and bounced nicely while printing a buy signal with the stochastic. If the trade were re-entered (or a core position held) there are some juicy profits to take.
The stock is now in overbought territory so it may be wise to close the position or at least tighten a trailing stop just under the horizontal support line. After this strong move from 63 to 69 it seems likely a pullback is in order. (I have no position.)
