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 then the market broke to a new historical high and reached the first target at 190.88 after hours. The target gave us a return of +18.58% in 12 days. (If you want to learn more about Elliott Wave Theory, please follow these links: Elliott Wave Education and Elliott Wave Theory).
Disney Daily Chart
We relabelled Disney impulse building a leading diagonal from March 2020 low ending at 137.34 as wave ((1)). Then a zig zag correction as wave ((2)) finishing at 117.19. Wave ((3)) is a clearly impulse ended at 183.54 and wave 4 pullback ended at 160.57. The last push to the upside to complete wave ((5)) and Wave I topped at 203.01. From there, the stock did a 3 swings down gave us the idea that we need one rally to complete the impulse, but the lagging in time from may un today is too long to think that and it is better to think that we are already in wave II correction.
We could see now we need to break the low of wave (W) in blue to confirm the progress of wave (Y). Then we should continue lower to 165.79 – 152.18 area to complete wave ((W)) as (W), (X), and (Y) double correction structure. That is the first part of the correction. Then we should see a bounce in 3 swings that should fail to complete the connector ((X)) and further downside should take place. This last face should have the same structure of the first one, that is a double correction (W), (X), (Y) to complete wave ((Y)) and also wave II.