Disney Completed Wave W and Still It is in Corrective Mode
Since the crash of March 2020, all stocks have tried to recover what they lost and Disney was no exception. Disney did not only recover the lost, but It also reached historic highs. Now, we are going to try to build an impulse from the March 2020 lows with a target around $230. Target measured from 0 to 2019’s high projected from March’s low, equal legs.
Disney Daily Chart

As
we see in the daily chart, the waves ((1)) and ((2)) of the impulse
have completed and currently we are building the wave ((3)). We hit our
first target at 190.88. The target gave us a return of +18.58% from
160.97. We believe that 198.77 is the end of the wave (3) of ((3)) and
wave (4) of ((3)) began to build. The area to watch to complete this
wave (4) is between 179.42 – 167.60 where we must continue the rally to
find out a new historical high and complete the wave (5) of ((3)).

Last
week was a little slow by some holidays. Disney continue with the
pullback as expected to look for a WXY double correction. (If you want
to learn more about Elliott Wave Theory, please follow this link:
Disney 30 minutes Chart

From 198.77 Disney began to drop and it should develop the wave (4) and we expected to see 3 swings down to complete ((w)). Then a corrective rally in other 3 swings to build ((x)) to continue the drop to finish W in red.

How we could see in the chart, Disney does not have big bounces and we adjusted wave ((x)) as flat correction. Then we see a bearish (a), (b), (c) and a bounce, concluding that wave W had ended and wave X had begun. The pullback of the wave ((b)) has been very depth and wave X could be a flat correction, so we expect a strong move higher to complete X in 188.18 – 191.60 area and then continue lower. If the market breaks the W low, the structure still could be an irregular flat for wave X and see the bounce that we are expecting. But if Disney goes more lower, the wave X in red was short ending at 187.65 and we will look to complete wave Y and (4) around of 171.00 dollars where Mickey should bounce for a new historical high.
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