Disney Approaching Important Moving Averages

Published on Tuesday, 31 August 2010 07:44 Written by TradersHuddle Staff

New York, August 31st (TradersHuddle.com) - Shares of Walt Disney Co. (NYSE:DIS) closed the trading session at $32.35 near its 50 day and 200 day moving averages currently set at $33.54 and $32.99 respectively. Disney's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

The Walt Disney Company, the largest media company in the world, conducts operations in media networks, studio entertainment, theme parks and resorts, consumer products, and Internet and direct marketing. The Company produces motion pictures, television programs, and musical recordings, as well as publishes books and magazines. Disney also operates ABC radio and television, cable channels and theme parks around the world. Disney owns the most watch and valuable sports network in cable, ESPN. The entretainment company was founded by Mr. Walt Disney in 1923 and its based in Burbank, CA.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $31.55 and calculated resistance at $35.41. These levels should be watched by traders, as they provide insight into the latest price dynamics in Disney shares.

Traders should evaluate their options if they want to establish a position on Disney given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.