On CNBC’s "Trading Nation," Katie Stockton of Fairlead Strategies said Thursday’s plunge in Walt Disney Company DIS shares looks like a "shakeout" and she sees this as a chance to buy the stock at a discount.
She explained that a shakeout is a "false breakdown" and Thursday’s move in the stock generates a “buy signal.” With the company’s stock being a laggard since March, it could be a "selling climax of sorts especially with the volume running heavy," Stockton stated.
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Stockton sees support level between $153 and $155 on the chart for Disney, with the next resistance level up about the 200-day moving average.
DIS Price Action: Disney shares dropped 7.1% to close at $162.11, but rose slightly by 0.6% in after-hours trading.
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