Thursday, 8 June 2017

DIS - the mid term cooling continues

Whilst the main market saw a day of chop, there was significant weakness in Disney (DIS), which settled -1.5% at $104.32. Since the April 27th high of $116.10, DIS has steadily cooled by around 11%. Near term outlook offers powerful support at the 200dma in the $103s. The most bearish outlook offers 101/100, before resuming upward.

DIS, daily

DIS, monthly


Suffice to add, Disney is unquestionably soundly based. Recent earnings were better than 'reasonable'. Some are still overly obsessed with viewership/earnings from ESPN, but its only just a part of a grander money making machine.

Indeed, it remains important to keep in mind that Disney owns the two best franchises in the world... Marvel and Star Wars. Both are hugely profitable, and run by teams they are literally drafting out movies and TV series for  DECADES to come.

Technically, Disney is long term bullish, but remains firmly stuck under the August 2015 high of $119.51. The key 10MA is currently being tested in the $104s.

If the main market is upset Friday (perhaps dragging into Monday), then further weakness to $101/100, before having a better opportunity to conclude the cooling from late April.

I am mid term bullish Disney to the $130s, which is now around 25% higher.