Red line- resistance
Blue line- support trend line
Despite having broken briefly above a key resistance trend line recently, DISNEY stock price is breaking below support levels that held for more than 2 years. Price is very close to making a new 3 year lower close. Disney stock price is trading below the $85 price level where the blue support trend line was. Today's close can provide an important bearish signal for Disney stock price. Price continues making lower lows and lower highs in the near term. The RSI continues to provide bullish divergence signals, but this is not a trend reversal signal. Only a warning. Price remains under pressure. Bulls need to recapture at least the $89 price level in order to hope that this was a fake break down and in order to reclaim control of the near term trend.
