Disney Reached Our Wave ((4)) Target And It Should Continue Higher

Since the crash of March 2020, all stocks have tried to recover what they lost, and Disney was no exception. Disney did not only recover the lost, but It also reached historic highs. Now, we are going to try to build an impulse from the March 2020 lows with a target around $230. Target measured from 0 to 2019’s high projected from March’s low, equal legs. Since we begin with this analysis on February 13th, we bought the share in 160.97 – 165.89 area.

Disney Old Daily Chart 

As we see in the daily chart, the waves ((1)), ((2)) and ((3)) of the impulse are done. We hit our first target at 190.88. The target gave us a return of +18.58% from 160.97. Disney dropped showing us that an irregular flat took place. The wave (C) had been playing very nice to complete as a ending diagonal, but that idea truncated last week. (If you want to learn more about Elliott Wave Theory, please follow this link: Elliott Wave Theory).

Disney Current Daily Chart 

Disney Current Daily Chart 

Last Thursday, Disney’s Q2 FY21 earnings results came up and there was a disappointment because Disney+ did not reach the expectations. The stock rapidly broke down post market hours and changed the wave ((4)) structure as a (W), (X), and (Y), where wave (Y)’s connector is a flat correction as red X. The price reached our target area, 170.09 – 174.41, to end the wave ((4)) and for us, technically, Disney should resume the uptrend looking for $230.00 target.

Source: https://elliottwave-forecast.com/stock-market/disney-reached-target-continue-higher/