How the price action of Discovery Communications (DISCA) is used to our Advantage

February 07, 2022, 15:45 pm ET, BY Jesse F.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Our job as #investors is to pay attention to the #stocks we own.  Part of that involves looking at the #fundamentals, but half of the disclosure comes from looking at price action. The  Discovery Communications (NASDAQ: DISCA) data table below can help you with price action, and we have more details too. Trading plans for DISCA are shown here too; these plans are updated in real time for subscribers, where this report is static. If you want an update, or a report on a different stock, please get one here Unlimited Real Time Reports.

Longer Term Trading Plans for DISCA

• Buy DISCA slightly over 21.97 target 31.93 stop loss @ 21.91 Details

The technical summary data tells us to buy DISCA near 21.97 with an upside target of 31.93. This data also tells us to set a stop loss @ 21.91 to protect against excessive loss in case the stock begins to move against the trade. 21.97 is the first level of support below 28.335 , and by rule, any test of support is a buy signal. In this case, support 21.97 is being tested, a buy signal would exist.

• Short DISCA under 31.93, target 21.97, stop loss @ 32.02 Details

The technical summary data is suggesting a short of DISCA as it gets near 31.93 with a downside target of 21.97. We should have a stop loss in place at 32.02though. 31.93 is the first level of resistance above 28.335, and by rule, any test of resistance is a short signal. In this case, if resistance 31.93 is being tested, a short signal would exist.

Swing Trading Plans for DISCA

• Buy DISCA slightly over 29.34, target 31.93, Stop Loss @ 29.26 Details

If 29.34 begins to break higher, the technical summary data tells us to buy DISCA just slightly over 29.34, with an upside target of 31.93. The data also tells us to set a stop loss @ 29.26 in case the stock turns against the trade. 29.34 is the first level of resistance above 28.335, and by rule, any break above resistance is a buy signal. In this case, 29.34, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DISCA near 29.34, target 26.51, Stop Loss @ 29.42. Details

The technical summary data is suggesting a short of DISCA if it tests 29.34 with a downside target of 26.51. We should have a stop loss in place at 29.42 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 29.34, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for DISCA

• Buy DISCA slightly over 28.38, target 29.53, Stop Loss @ 28.31 Details

If 28.38 begins to break higher, the technical summary data tells us to buy DISCA just slightly over 28.38, with an upside target of 29.53. The data also tells us to set a stop loss @ 28.31 in case the stock turns against the trade. 28.38 is the first level of resistance above 28.335, and by rule, any break above resistance is a buy signal. In this case, 28.38, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DISCA near 28.38, target 26.51, Stop Loss @ 28.45. Details

The technical summary data is suggesting a short of DISCA if it tests 28.38 with a downside target of 26.51. We should have a stop loss in place at 28.45 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 28.38, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

DISCA Ratings for February 07:

Term →	Near	Mid	Long
Rating	Strong	Strong	Weak
P1	0	0	14.86
P2	28.38	26.51	21.97
P3	29.53	29.34	31.93

Support and Resistance Plot Chart for DISCA

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