DIS, NFLX and SPOT Forecast – Major US Stocks Quiet in Premarket

DIS Technical Analysis

Disney looks like it’s going to gap higher at the open for Monday as it obviously is feeling very good after the headlines from the weekend of the United States and China maybe working together, but we also have to keep in mind that the earnings call was just on Wednesday, and it was better than anticipated. So, at this point in time, it looks like it’s going to jump about $3, maybe even as much as $4 right at the open.

NFLX Technical Analysis

Netflix looks as if it is just kind of hanging out and that does make a certain amount of sense, as the market had shot straight up in the air for a while. So, you would anticipate that there would be a little bit of digestion sooner or later. So, with that, I think you have to really start to see the idea of perhaps trying to work off some of the excess froth and then build another case to go higher.

It’s a little bit of a drop towards major support, maybe even as much as $100. Although I don’t think we dropped that far, but sideways action for a while can work off some of this froth just as much as a pullback. So, one of the other is more likely to happen than just continuing to go higher.

SPOT Technical Analysis

Spotify looks like it’s going to open pretty much flat after Friday’s close, but it’s also worth noting that we just recently broke out to a fresh new high in Spotify, and we are stabilizing at these lofty levels. With that, I think you still have a buy on the dip scenario, and I do think that this is a market that has support going back multiple places, and the most obvious one to me is $600, but you could also make an argument that $625 also offers support.

If you look at the W pattern that we formed at the top here, you can make an argument for a move towards $800, but that would take some time to get there. Again, I think this is a buy on the dip type of market. It certainly is strong. Or we could go sideways and then just take off from there. I have no interest whatsoever in getting short.