Tuesday, 16 May 2017

DIS - pirates holding at ransom

Whilst the main market saw a day of moderate swings, there was notable weakness in Disney (DIS), which settled -1.0% at $107.98. Next support is around $105, where the 200dma will be lurking by mid/late June. Recent earnings were unquestionably good, and a break to new historic highs remains due.


DIS, daily



DIS, monthly



Summary

Pirates 5' is due in just ten days (for Memorial day), but (rather ironically) a group of pirates have seized themselves a digital copy of the movie, and are requesting ransom, or they will release the movie in pieces prior to release. Disney is naturally refusing to pay, so I'd imagine the various p2p networks - and even youtube, will start seeing 5-10min pieces of the movie within a few days.

Frankly though, I don't see it harming box office sales, the setup is good, and the movie will probably pull in $1bn worldwide.

Recent earnings were fine, but the stock continues to see some cooling from a recent high of $116.10. Old resistance of the $105s is now first big support. Its notable that the 200dma will be around that level in June.

I am broadly bullish Disney, an eventual break above the Aug'2015 high of $119.51 seems a given. A year end close in the $130s (as Star Wars 8 is due) looks just about within range.

--



yours... prefers the solidity of land.