Thursday, 4 August 2016

DIS - cooling ahead of earnings

Whilst the main market settled broadly flat, there was more notable weakness in Disney (DIS), which settled -1.0% @ $95.16. Earnings are due next Tuesday (AH), and Mr Market will be looking for some inspiration to buy the stock back above the psy' level of $100.

DIS, daily

DIS, monthly


Cyclically - short term, DIS is on the low end of the cycle, and is due another up wave, having cooled from the $100 threshold. Indeed, the $100 threshold remains very natural strong resistance.

The bigger monthly chart is looking a little bearish, as there is a clear break of rising trend, that stretches back to the Feb' low of $85.63.

If the market is not pleased next week, first support will be the $90/87 zone.

An August close >$100 would be suggestive of broader upside to the $110/115 zone before year end.

Best guess... DIS to break >$100, as the broader market heads higher into September.