Walt Disney Co. (DIS) has been in the news lately with CEO Bob Iger and Florida Gov. Ron DeSantis taking off the gloves as well as cost cutting at the House of Mouse.
Let's review the charts and indicators and see if we can come to some sort of an agreement on the what's next for the stock.
In the daily bar chart of DIS, below, I see a stock that has been struggling the past year. The shars have spent much of the last year below the declining 200-day moving average line.
Trading volume has been more active since November but the daily On-Balance-Volume (OBV) line has weakened and tells me that sellers of DIS have been more aggressive than buyers. The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line now.
In this weekly Japanese candlestick chart of DIS, below, I see a weak chart picture. The shares are in a longer-term downward path. DIS trades below the 40-week moving average line.
The weekly OBV line has been in a long and serious decline. The MACD oscillator has been below zero line since late 2021.
In this daily Point and Figure chart of DIS, below, a downside price target of $78 is indicated.
In this weekly Point and Figure chart of DIS, below, a price target of $79 is being projected.
Bottom-line strategy: DIS seems to be pointed down to slightly new lows. If the trading volume dries up we might be looking at a tradable price low. Can't say for sure now so let's check back in a few weeks. Be on the lookout for a day(s) when Disney does not decline on bearish news.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
