Disney is poised for growth as it adjusts its operations. Recently, the company surpassed expectations, thanks to increased income from Parks & Experiences and a quicker reduction in streaming losses. Disney anticipates double-digit EPS growth by 2026, focusing on its important franchises and achieving profits in its Direct-To-Consumer (DTC) segment. CEO Bob Iger aims to introduce a standalone ESPN app and launch major films to boost growth. Disney’s stock chart indicates it may rise, forming a bull flag pattern. The price has returned to key VWAP levels, showing that buyers are in charge. The stock trades between $110 and $116, with a breakout target of $124 based on past resistance. The RSI and volume trends suggest momentum is increasing. A daily close above $116 would signal a breakout, while $110–111 serves as immediate support. Several elements could impact Disney’s rise to $124, such as the ESPN app, park attendance, cruise bookings, and box office performance of upcoming films. Any movie flops or disputes in sports broadcasting could create short-term hurdles. Success in these areas could drive the stock higher. A strong move above $116 is crucial, especially with two earnings reports approaching that could provide vital information. Disney’s setup looks promising as it hovers near the important $116 level. The technical patterns indicate that a resolution may happen soon, making this a great time to plan a trade. We should aim to capture a potential move towards the $124 target discussed earlier. The robust performance in the Experiences segment offers a solid foundation for the stock, particularly after record holiday attendance in the final quarter of 2025. Recent travel reports from early January 2026 show that bookings for the new Disney Destiny cruise ship are already nearly full for its first season, highlighting strong demand that boosts operating income. Additionally, the studio’s performance is strong, alleviating concerns from last year. The late 2025 releases of *Zootopia 2* and *Avatar: Fire and Ash* both greatly exceeded box office expectations, with *Avatar* recently hitting over $1.5 billion globally. This success provides a significant catalyst that was not fully accounted for in the stock’s previous consolidation. For a low-risk approach, we might consider buying bullish call spreads to take advantage of the expected price movement. A February or March expiration with a $115 or $116 strike call and selling a $124 strike call creates an appealing reward-to-risk ratio. This strategy allows us to benefit from a breakout while limiting our maximum loss if the pattern moves downward. Alternatively, selling puts at or below the $110 support zone is another good strategy for the upcoming weeks. This would allow us to collect premium from the trade, benefiting from decreasing volume and lower volatility ahead of the anticipated breakout. If the stock dips, we could buy shares at a price we already see as strong support.

here to set up a live account on VT Markets now