The Walt Disney Company (DIS) reported earnings yesterday and reaction hasn’t been great despite posting descent numbers.

On the chart there are two technical developments: one good and one bad. Which way it decides to go is anyone’s guess. But I’ll lay out the two scenarios for you. 

The Good: The rising trend-line that goes back to the Spring of 2014. Right now DIS is trying to bounce off of this level. It provides a nice risk/reward setup for the stock going forward and could be worth playing here. 

The Bad: A massive double top formed over the past year that has confirmed this week on the weekly chart. If this chart was to play out to its full potential it would create a move as low as $65. A massive move and not one that is appropriate to call here. But if the market does go to crap, it has that potential for sure, at which point it becomes an insane value play. 

Here’s the DIS chart: