Quick Take Technical Analysis: Walt Disney Co

Walt Disney Co DIS gapped down 6.63% on Thursday morning after printing worse-than-expected quarterly adjusted earnings. Atlantic Equities downgraded the stock from Overweight to Neutral and lowered its price target from $219 to $172.

• Intraday, Disney fell almost 3% lower and nearly filled a gap between $157.67 and $160.55, which may give bulls more confidence going forward.
• The closest gap is now $163.87 and $173.87. Gaps on charts fill about 90% of the time so it's likely Disney will trade up into the range in the future.
• There is also a lower gap between $128.66 and $133.86 that's likely to fill, although it could be quite some time before that happens.
• Disney looked to be printing a bullish hammer candlestick on the daily, which demonstrates the dip below $161 was bought. A hammer candlestick is often found at the bottom of a downtrend and can indicate a reversal into an uptrend.
• At 11:30 a.m. EST, Disney was printing an inside bar on the hourly chart. Traders can watch for the break of the pattern to gauge the next hourly direction. 
• The stock has resistance above at $167.10 and $171.89 and support below at $160.90 and $153.88.

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