Disney ready for the escape; XL Small Cap Wrestling

I’m sure everyone knows the huge companies we cover Income advantage today, Walt Disney Co. (NYSE: SAY)... Additionally, we will look at small cap stocks that are aiming for a breakout – XL Feel Corp. (NYSE: XL)...

But first, a brief summary of the breakout actions of the past week …

Electronic Arts correctly met analysts’ revenue expectations, but not enough to win Investor. After opening at a high price last Thursday, the EA sold out within the day and plunged into the flip side of the triangular pattern we were seeing.

Look for a lower EA from here.

Teradata reported higher profits than expected.As I explained to us Income advantage, this is what I was looking for to trigger my new transaction Quick profit Research service.

Profits topped the news, which crushed analysts’ expectations by 60%, jumped 5%.

However, after that, the stock price fell to a loss of 5%. This is a 10% drop from today’s highs. This also returned the stock to the corner model I showed you for the stock. We will keep adding the call for now until the corner configuration is clearly broken. It’s meant to keep your radar on until that happens.

So let’s dive into two essential actions this week …

Income advantage Action Number 1: XL Fleet Corp. (NYSE: XL).

Results announcement date: After closing on Thursday.

Expectations: Income per share ($ 0.06). The turnover is $ 4.4 million.

Average analyst rating: Excellent

to be honest. I didn’t even know this company and what it was doing. This is primarily for the large companies that run fleets of vehicles that are still in service, but if the cost is right, this is cutting edge technology.

The XL can convert some regular vehicles to hybrid electric vehicles (EVs) with just a few changes. Mainly for trucks, vans and buses that operate on fleets.

The good thing is that this technology can increase miles per gallon by up to 50%, which is a big cost factor for anyone managing multiple vehicles.

It exploded onto the scene late last year, dropping all profits and slumping 80% after XL prices soared above 200% from November to December.

Now stocks are trading in wedge patterns that we need to watch out for …

XL wedges show dangerous choices

The primary resistance of the red tends to be lower, but it is 30% higher than the list price of the XL.

That is, the stock has jumped 30% and can still get stuck in the wedge pattern, with no new trend emerging.

On the downside, there isn’t a big drop to break this key support on the green. If so, see below. Inventories can drop rapidly by up to 50%.

The technology is interesting, but XL needs to find a new fleet operator willing to spend a fortune to transform a regular vehicle.

While benefiting from trends in electric vehicle demand, as electric vehicles expand, customers no longer have to modify existing vehicles, which can be a foregone conclusion unless XL adapts.

For now, look for an XL that will take a big step forward with this week’s earnings.

Income advantage Stock 2: Walt Disney Company (NYSE: SAY).

Results announcement date: After closing on Thursday.

Expectations: Income of 0.55 per share. Revenue of $ 16.7 billion.

Average analyst rating: Excellent.

Have you seen any new details on the Star Wars Hotel, Galactic Star Cruiser?

You can already see a herd of people looking like “Take the money!” “

I know the headlines attack the price. More than a night court for one person. About 5 large for a family of 4 for a 2 night adventure. I say: who cares?

Disney hotels are some of the more expensive hotels that operate for over $ 1,000 per night with no additional features. Star Wars One is an all-inclusive experience with all meals, Park Passes, and more.

It’s a big hit and has been selling for years.

I know those stats aren’t available yet, but there’s no doubt you’ll reveal some of the excitement she sees after the company released the details last week.

All I can say is register.

I’m not a Star Wars nerd. But I love the experience that Disney gives to me and my family. Disney will sell itself for this incredible experience on this planet until the cost of space travel is around $ 5,000.

It’s the kind of care Disney has taken to make the hotel a “one-of-a-kind” experience, helping to push normally stable inventory to a peak of $ 200 earlier this year. paddy field.

Since reaching an all-time high, stock prices have fallen and are trading in large wedge formations.

DIS trends for rashes

Red’s decreasing resistance level is approaching green’s increasing support line.

This is the kind that I insist every week Income advantage It indicates that an escape is in progress.

Not only may earnings from these stocks be higher than expected, but if a major trend collapses, stocks should continue in the same direction, at least for the next few weeks.

I’m definitely optimistic about Disney in the long run, but the short-term headaches and rising costs of pandemics may be hampering inventory for now.

Therefore, the above graph is very important. It tells us the next major trend in stocks. Therefore, we will be watching it closely this week to see if any new trends emerge.

Chad Shoop is a Certified Market Technician and Options Expert at Banyan Hill Publishing. He is the editor of three major newsletters. Quick profit, Automatic profit alert When Pure income.. Its content is frequently published on Investopedia and Seeking Alpha. Find out Youtube channel To see his latest market information.

click here to participate A true master of options.

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