Walt Disney Co. (DIS) joined the elite club of the Dow Jones Industrial Average (DJIA) back in 1991. In the past year DIS was the biggest drag on the average and its decline so far in 2022 is not helping. Let's check out the charts and indicators.
In this daily bar chart of DIS, below, we can see that prices turned lower back in March. Prices broke below the 50-day and 200-day moving average lines in September. A big downside price gap and support break in November cannot be ignored.
The daily On-Balance-Volume (OBV) line has been weak all year. The 12-day price momentum study shows some slight slowing from November to January but I doubt if this can generate a rally.
In this weekly Japanese candlestick chart of DIS, below, we can see the past three years of price movement. DIS might find some support in the $130-$120 ranger but I would not suggest probing the long side based on the word "might". The slope of the 40-week moving average line is negative. The weekly OBV line is bearish and so is the MACD oscillator.
In this daily Point and Figure chart of DIS, below, we can see a potential downside price target in the $99 area or just below the price of a one-day ticket.
In this weekly close only Point and Figure chart of DIS, below, we used a five box reversal filter. Here the software suggests a target of $62.
Bottom line strategy: Mickey Mouse and many investors are going to be depressed over the price performance of DIS. Avoid the long side as we have potential price targets of $99 and $62 based on the Point and Figure charting technique.
(Disney is a holding in the Action Alerts PLUS member club. Want to be alerted before AAP buys or sells DIS? Learn more now.)
