Wednesday, 10 February 2016

DIS - the selling continues

Despite unquestionably good earnings, Disney (DIS) continued to slide (intra low $86.25), settling -3.7% @ $88.86. Near term outlook still offers high threat of a short term bounce to the 95/97 zone, but the broader outlook is clear.. headed lower to at least 80/75.

DIS, daily

DIS, monthly


*closing daily candle is of the reversal type, but having broken a new multi-month low, it should not inspire the longer term bulls.

Q4 earnings for DIS were no doubt largely helped by huge box office receipts from Star Wars 7, yet that still wasn't enough to satisfy the market.

Clearly, EPS/rev' were fine, but in the current market, its still not seen as good enough.

Regardless of any near term bounce, DIS looks headed lower by another 10/15% - which would sync up with the broader market downside to the sp'1600s.

Special note..

A monthly close <$75 would bode for continued implosion to the old breakout level of $40. That would be suggestive of sp'1200/1000. For now... its something to keep in mind, if very unlikely.