Trade of the Week

July 24, 2023
Josh Viljoen
Josh Viljoen

USD large cap stock coming into attractive levels

My trading pick for this week is none another media and entertainment giant Disney (NYSE:DIS). The stock has been severely beaten down over the past two years since March 2021 and I suspect this presents an attractive entry for a long term swing trade.


The stock has drifted back down towards the COVID-19 lows and and the lows of December 2022 around the 80 to 85 dollar mark. The share currently trades at $87 dollars a share and at a key level of long-term support.


I think the current price presents a good risk to reward ratio. Should you wish to time your entry I would look to enter if the stock pushes down further to $85. Entering at current levels with a stop loss around $77 and targeting the March 2021 highs of $200 offers a nice risk to reward of 1 to 11, which I think is asymmetric upside for the level of risk. 


The potential gain on should the price hit $200 again from current levels of 130% for an unleveraged position. This trade however could take a while to play out and will require patience. 


This should not be considered financial advice and all investments and trades are inherently risky and have no guaranteed returns.


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