Walt Disney - key support along the 200MA

Taking a look at Walt Disney as its stock price is approaching the key support along the 200-day moving average on the daily chart. Currently, its stock is trading at around $100.22 a share in the pre-market session. The last time the price reached the 200MA a fresh rally then followed, rising as much as 40% across 75 days. With what seems like a correction move following the earnings, there is a possibility of a bounce higher in the coming weeks. Especially with the newly released ‘Inside Out 2’ generating around $155 million in US sales, which has been the strongest debut for a film this year. However, history is not a guarantee of the future. Hypothetically, if this was the beginning of a new leg higher, comparing with the previous rise, a 40% move would take the price of Disney’s shares to around $140 a share. Near-term resistance reads $104.52, a break and close above would certainly spark some optimism with a potential push towards $106-$110. Near-term support is Friday’s low of $99.25 followed by the support along the 200MA, which currently reads $98.24. A break and close below $98.24 may result in a sell-off towards $88-$90. Looking at the technical indicators, they seem to remain in a neutral/negative position.