The Walt Disney Company (DIS) was higher in early market trading Thursday as traders like the latest earnings report and restructuring news from the mouse house.
Let's check out the charts and indicators.
In this daily bar chart of DIS, below, we can see the price movement through Wednesday's close. Prices are trading above the bottoming 200-day moving average line and above the rising 50-day moving average line. The trading volume has been more active since early November and prices made a low in December.
The daily On-Balance-Volume (OBV) has bottomed since July and suggests a shift to more aggressive buying from aggressive selling. The Moving Average Convergence Divergence (MACD) oscillator turned bullish in January but has narrowed in recent days.
In this weekly Japanese candlestick chart of DIS, below, I can see some improvement. Prices are above the 40-week moving average line. The weekly OBV line shows a turn higher in January. The MACD oscillator has improved and is close to the underside of the zero line and thus close to an outright buy signal.
In this daily Point and Figure chart of DIS, below, I can see an upside price target in the $166 area.
In this second Point and Figure chart of DIS, below, I used weekly price data and the software gave me the same $166 price target.
Bottom line strategy: Restructuring news can come in fits and starts and I suggest the price movement in shares of DIS may also do that. A pullback or correction at some point in time should also be expected.
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