Disney Stock Breakdown: Hidden Bull Flag and the Next Big Move

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Disney Stock Breakdown: Hidden Bull Flag and the Next Big MoveWalt Disney Company (The)BATS:DISBinhuseynPrice continues to trade inside the long-term parallel channel drawn from the higher timeframe structure. This channel has been respected for several years, and price is still moving within the same range. On the monthly chart, price is below the 50-EMA, which increases the probability of a deeper retracement toward the 200-EMA. The global downtrendline, built from the major lows, was broken by a strong two-month bullish impulse. Current price action suggests the market may be forming a retest of that breakout zone. On the weekly timeframe, price is trading below both the 50-EMA and 200-EMA, signaling potential continuation to the downside before buyers regain momentum. MACD and RSI both point lower, supporting the expectation of a pullback. A reaction around the weekly RSI 30 zone is likely. A bull flag structure is developing. The corrective move is slower than the preceding impulse, indicating buyers are consolidating. If a breakout occurs near the expected zone, the pattern’s measured move suggests a potential rally equal to the height of the flagpole, aligning closely with the next major resistance level. Another important detail: upward swings inside the channel have progressively shortened, signaling weakening seller control and an increasing breakout probability. Selling volume has also decreased week-over-week, and the company’s latest report came out positive, adding additional bullish context once the correction completes. Overall, the base scenario: further downside into the retest area, followed by a potential bullish breakout if the flag pattern confirms.