Why Boeing, Disney, Nvidia Stocks Could Be Settling Into This Bullish Pattern

Boeing Co BA, The Walt Disney Co DIS and NVIDIA Corporation NVDA may be setting up into bullish flag patterns on the daily chart. The bull flag pattern is created by a sharp rise higher forming the pole, which is then followed by a consolidation pattern that brings the stock lower between a channel with parallel lines.

• For bearish traders, the "trend is your friend" (until it's not) and the stock may continue downward within the following channel for a short period of time. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.
• Bullish traders will want to watch for a break up from the upper descending trendline of the flag formation, on high volume, for an entry. When a stock breaks up from a bull flag pattern, the measured move higher is equal to the length of the pole and should be added to the lowest price within the flag.

A bull flag is negated when a stock closes a trading day below the lower trendline of the flag pattern or if the flag falls more than 50% down the length of the pole.

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The Boeing Chart: Traders can watch for continued low-volume consolidation on the daily chart within the paralell lines of the flag pattern on Monday and possibly Tuesday.

If the flag is recognized, big bullish volume could come in to break the stock up from the bull flag formation.

The Disney Chart: Like Boeing, Disney will need further consolidation on low volume to complete the pattern. The stock is also trading in an inside bar pattern during an uptrend, which is bullish.

The NVIDIA Chart: Nvidia was consolidating on low volume and holding above the eight-day exponential average. The stock may need another day or two before garnering the power to break up from the flag if the pattern holds.