Falling Wedge (Breakout & Retrace) (Continued)

As in my last publication, the falling wedge played out beautifully as DIS rallied with amazing strength, amassing +4.8% yesterday. The option contract I recommended and alerted was up big time. However, today had a major sell-off (coupled with PPI data release) that looks like a retrace to test the upper trendline. A good bounce near the upper trendline of the falling wedge would allow for a continuation of this breakout.

The mid-88 price (thick red line) appears to be a where it wants to head before bouncing, which coincides with where the upper trendline would be. Using the volume profile, we can also see that the thick redline coincides with a level with strong liquidity. A bounce is highly probable there! I would wait to re-enter a call if it gets near there, perhaps a 90C or 95C November contract.

I no longer hold any positions in DIS after booking the profits from the breakout.

Good luck!


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