Last up is Disney (DIS), a stock that's showing some signs of life after meandering sideways since the start of the summer. Now $67 is the level to watch for a breakout in this entertainment giant.
Disney is currently forming an inverse head and shoulders pattern, a bullish setup that indicates exhaustion among sellers. The pattern is formed by two swing lows that bottom out around the same level (the shoulders) that are separated by a deeper low in between them (the head). The buy signal comes on a move through the neckline, which sits right at $67 for shares of DIS right now. That means that this Mickey Mouse and friends could be looking at a breakout in today's session.If you think that the head and shoulders is too well known to be worth trading, the research suggests otherwise: a recent academic study conducted by the Federal Reserve Board of New York found that the results of 10,000 computer-simulated head-and-shoulders trades resulted in "profits [that] would have been both statistically and economically significant." That's good reason to keep an eye on both of these names in the next few sessions. To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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