Disney (DIS) shed nearly 13% in just nine trading sessions following its recent earnings report, where flat revenue numbers spooked investors despite a solid bottom-line performance. However, the narrative is shifting. The stock staged a solid rebound last week and is now flashing strong signs of a technical recovery. While the bounce is already underway — perhaps halfway through its initial leg — my analysis suggests there is still significant runway before we hit major overhead resistance. This is a pure technical set-up, and I am looking at three of my favorite indicators to confirm that the momentum is real. Directional Movement Index (DMI) The DMI is my go-to for gauging trend intensity. It consists of three components: the DI+ (green line), the DI– (red line), and the ADX (blue line), which measures the strength of the trend. Typically, a reversal is signaled when the directional lines shift. However, the most powerful signal comes from a DMI Crossover—when the green line crosses above the red. We are seeing this bullish cross now, which is widely regarded as a major sign that the trend has officially flipped. MACD The Moving Average Convergence Divergence (MACD) is a cornerstone of trend-following analysis. While the standard settings are effective, they can often lag in fast-moving markets. To gain a more responsive edge, I utilize a faster MACD setting of (5, 13, 5). DIS flashed a bullish crossover on Nov. 25, roughly two weeks ago. Normally, I jump on these signals immediately. However, when a stock falls due to a fundamental catalyst like a revenue miss, caution is key. I preferred to wait for confirmation rather than risking an early entry. Now that the MACD is rising firmly, that patience has paid off—the trend is confirmed. RSI (Relative Strength Index) The final piece of the puzzle is the Relative Strength Index (RSI), which measures the speed and magnitude of price movements. The RSI has been rising sharply for nearly a month, mirroring the price recovery. This steady climb out of the lows adds a critical layer of confluence, confirming that buyers are stepping in aggressively to support the stock. The Trade Set-up: DIS 107-108 Bull Call Spread To trade this set-up, I am using a bull call spread—a straightforward options strategy that allows us to participate in the upside while strictly capping our risk. I am targeting the $107 / $108 call spread. This involves buying the $107 call and simultaneously selling the $108 call with the same expiration. Why I like it: Capital Efficiency: You can structure this trade for a debit of roughly $0.50 per spread. Scalability: This low entry price makes it easy to scale. For example, a 50-contract position would require risking roughly $2,500 (50 x $0.50). Risk/Reward: If Disney closes at or above $108 at expiration—which is just cents away from where the stock is currently trading—the spread achieves its maximum value of $1.00. This turns that $2,500 risk into a $2,500 profit, delivering a potential 100% return on risk. Here is my exact trade set-up Buy $107 call, Jan. 9 expiry Sell $108 call, Jan 9th expiry Contracts: 10 Cost: $500 Potential Profit: $500 DISCLOSURES: Nishant has a DIS bull call spread expiring on 1/9/25. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.