Disney (DIS) continues to try to "reinvent" itself under the leadership (again) of Bob Iger. So far, the jury is out on both a potential turnaround -- and its stock price.
Let's check out the charts and indicators of the House of Mouse.
In the daily bar of DIS, below, I can see that the shares have been trading lower the past year. DIS trades below the declining 50-day moving average line and below the bearish 200-day moving average line.
The trading volume histogram shows an increase of activity since May and suggests to me that traders are voting with their feet. The On-Balance-Volume (OBV) line shows a weakening trend since February as sellers of DIS are being more aggressive than buyers.
The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero line.
In the weekly Japanese candlestick chart of DIS, below, I can see a negative picture. Prices are in a longer-term downtrend and trade below the negatively sloped 40-week moving average line.
The weekly OBV line has been in a longer-term downward path and tells us that sellers of DIS have been more aggressive than buyers for an extended period of time. The MACD oscillator is bearish and the candles have yet to show us any reason to anticipate a bottom.
In this daily Point and Figure chart of DIS, below, I can see a potential downside price target in the $68 area.
In this weekly Point and Figure chart of DIS, below, I see a price target in the $73 area.
Bottom-line strategy: Unfortunately DIS has not yet reached a meaningful low and has not started to hammer out a base pattern. Avoid the long side of DIS but I would not try to talk you out of taking a Disney cruise.
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