In today’s Stock of the Day, we’re looking at Disney (DIS), which is facing a critical technical test on the weekly chart.
The price has now reached a key resistance level at $125, highlighted in green — a level that previously acted as a ceiling during 2024 and in the second half of 2022. With that kind of history, it’s no surprise to see sellers stepping in, using this zone to open short positions.
The price action has reacted accordingly. Over the past three weeks, Disney has shown signs of hesitation, with a clear stalling just below resistance. That area is now marked with a yellow rectangle, and what’s forming could turn into a classic evening star candlestick pattern — a bearish signal that often points to a short-term or even medium-term reversal.
But it’s not confirmed yet.
For the evening star to be valid, today’s session (Friday) would need to produce a significant move lower, with the weekly close landing below $118. That would complete the pattern and offer a technical signal to go short.
On the flip side, if bulls manage to hold the line — or even push for a close above the $125 resistance zone — that would flip the script completely. A weekly close above that green area would act as a strong long-term buy signal, breaking out of a multi-year cap and potentially unlocking much higher levels.
So the technical picture is finely balanced. The close of today’s session and this week’s candle will likely decide which side wins — and set the tone for Disney’s next major move.