WALT DISNEY: New maximums with the permission of its results!The Walt Disney Company is a company engaged in various activities, such as theme parks, tourist services, films and television, publishing and consumer products, and interactive services. The brands of The Walt Disney Company include, among others, ABC Entertainment.
--> What is the technical aspect?
If we look at the chart, the technical aspect is clearly bullish ( Bull ).
After making a strong retracement of almost 50% Fibonacci, on January 21 the price gave us the first bullish warning ( Bull ), which was confirmed 2 days later. Since that day, we considered the retracement phase to be over and a new bullish phase ( Bull ) began on the way to new highs. But there was one last hurdle to overcome, the 116 zone.
--> Will it be able to overcome the zone?
Technically, it is very likely that it will overcome it without problems, but tomorrow it will present results, and we already know that if the results are not good, the price will fall sharply.
--> What can we do?
2 options:
1) AGGRESSIVE PROFILE: Ignore that it will present results tomorrow.
2) CONSERVATIVE PROFILE: Wait until Thursday to make decisions.
If our profile is aggressive, we will operate as follows:
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Strategy to follow:
ENTRY: We will open 2 long positions if the price exceeds 116
POSITION 1 (TP1): We close the first position in the 121.90 area (+5%)
--> Stop Loss at 110.36 (-5%).
RATIO: (1:1)
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-5%) (coinciding with 110.36 of position 1).
--> We change the dynamic Stop Loss to (-1%) when the price reaches TP1 (121.90).
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SET UP EXPLANATIONS
*** How do we know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: IF the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% on increases, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very solid and stable price trends can be taken advantage of, maximizing profits.
