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Wednesday, December 30, 2015

Trading Recommendation on Walt Disney (January – May 2016)

Walt Disney stock (NYSE:DSI) is expected to perform a perpetual rally, starting from the beginning of January 2016 and ending somewhere around the end of May of the same year.

To be candid, the current outlook on the market is bearish, for the price is below the EMA 21 while the Williams’ % Range period 20 is in the oversold territory. This means a bearish signal, but since the market is oversold, there could be a significant reversal in favor of buyers any moment from the end of this year.

Walt Disney would most probably rally within the stipulated period, though there might be intermittent pauses and corrections along the way. A decent bullish gain is likely in the offing.

When you discover that you win 6 out of 10 trades, then you know that you have a reliability of 60%, but you do not know whether negative trades would precede positive trades; or vice versa. No matter the order in which negative and positive trades come, your end profitability would be unchanged but the roll-downs your experience can vary in length and duration. Instead of losing 15%, you might lose 25% based on whether negative trades precede positive trades. Please bear this truth in mind – facing the vagaries of the market with courage.


This forecast is ended by the quote below:

“If you make a profitable trade and did not follow your rules, it is only a “lucky punch.” - Markus Strauch

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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