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Disney On A One-Way Roller Coaster: A Technical Look

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Joel Elconin is the co-host of Benzinga's PreMarket Prep, a daily trading idea radio show.

Walt Disney Co (NYSE: DIS) shares are trading sharply higher by $7 at $101.32 in Wednesday's session. The catalyst for the rally is a $0.20 earnings beat ($1.27 vs. $1.07) on better-than-expected revenue ($13.39 billion vs. $12.87 billion).

In a fantasy rally for shareholders, investors are grabbing every offer in site. Despite having some trouble at the psychological resistance level of $100.00 off the open, it has reached $101.32 in Wednesday's session.

Related Link: Disney Just Hit An All-Time High And This Analyst 'Can't Help But Like' The House Of Mouse

What makes the rally more impressive is the fact that the company has only a 2.68 percent short interest (the quantity of stock shares that investors have sold short but not yet covered or closed out). Therefore, a small portion of the rally may be attributed to short covering, but a large amount of buying may actually be new longs entering the issue at these elevated levels.

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