Disney (DIS) already priced performance in. The 14.5% increase from the last earnings demonstrates that Disney has already priced in stellar performance. Holding over earnings may provide a small portfolio boost if you're lucky, but downside risks present kill make it just straight up gambling in my opinion.
Bearish MACD shows upward moment is getting exhausted.
Disney
Clear entry for long position.Disney is coming up upon important support at 90. If one is looking to get long, the R/R from these prices seems attractive.
I would look to stop out under the 200 WMA.
As an aside, I am reading the book: Walt Disney: The Triumph of the American Imagination by Neal Gabler.
Excellent Read
Link:
www.amazon.com
Support at 90 is still holding firm.Technically Speaking
Disney is still holding the 90 level. The 200 WMA is right under the 90 level. The stock has not closed below that moving average since 2011.
Fundamentals
Here is a summary of the company.
What to do?
The R/R seems to favor a long position from these levels. Buying here and stopping out under the 80-85 level, seems sensible.
They do pay a modest dividend 1.53% yield. This is not a stock that will 5 or 10x your money, but could be a solid longer term hold. Of course, many analyst worry about them competing with the apps that keep the young people busy(insta, snap, facebook, etc) and the cord cutters. They could be right, but how much of that worry is already baked in? Hmmm...
Bearish on DIS Toward 93.25DIS is displaying bearish MACD divergence after a double top and a break of a 4 month long trendline. I am short on the retest of the trendline until the 93.25 area where a bullish bat could potentially be completed. SL is placed above .618AB with target above the completion of the bullish bat.
Double Top On DisneyLooks like a double top in Disney. Fundamentals of the company are very solid, and with Star Wars release, I am not sure if this will play out. If not a double top, could be a good buying opportunity at the resistance. I will be buying some puts here and will consider going long on the stock itself if it holds support line and bounces back.
DOW JONES OVERVIEW (END): DISNEY IN FIRM UPTRENDFinalizing our Dow Jones overview is Disney - and it is doing it on a positive note! DIS is one the best-looking stock from our Dow Jones overview - on par with Nike and UNH, also Viza.
On long term perspective it trades firmly above upper 1st standard deviation from 5 and 10 year means - which means that long term uptrends are well in progress.
On short term basis the long term picture is confirmed by the positive slope of 1-year mean. Price here trades within 1st standard deviations from both weekly and quarterly means, showing no short term trend, so nothing stands in the way of long term uptrend.
DIS relative strength during market correctionPrice of Disney's stocks holds nicely during this corrective phase showing relative strength. S&P was up 1% on Friday and gain 6 handles on premarket showing some follow through. This stock could be a good candidate when market buying will resume. Entry ans Stop on chart. It is difficul to say what could be potential target as stock hovering near historical highs, but minimum requirements are 1,5-2 more that risk (makes our target $91.60 - $92.00)