Monday, 7 August 2017

DIS - leaning weak ahead of earnings

Whilst the main market saw yet another day of micro chop, there was notable weakness in Disney (DIS), which settled net lower for the third day of the past four, -1.2% at $106.35. The 50/200dma will offer big support in the upper $105s.

DIS daily

DIS monthly


Suffice to add, short term, from a pure technical/cyclical perspective, the setup favours the bears across the next few days, as we saw a bearish MACD cross on the daily cycle today. Price momentum on the bigger monthly cycle is fractionally negative, having cooled since April ($115.24).

However, unless you think the main market is close to a mid/long term top, there is little reason to see DIS under the most recent key low of $102.41, or the core psy' level of $100 any time soon.

*earnings are due Tuesday Aug'8th in AH.