Shares of Disney (DIS) are lower in early trading Thursday as traders, investors, and analysts react to their latest quarterly numbers and their push into streaming. The Mouseketeers are getting depressed.
Let's check out the charts.
In the daily bar chart of DIS, below, we can see that the shares have weakened from the past summer and fall when DIS was trading in the $170-$190 area. DIS is in a downtrend below the bearish 50-day moving average line and the negatively sloped 200-day moving average line.
Trading volume has increased from November as more Disney followers are voting with their feet. The On-Balance-Volume (OBV) line has been in a downtrend as sellers of DIS have been more aggressive than buyers.
The Moving Average Convergence Divergence (MACD) oscillator is bearish and pointed lower.
In this weekly Japanese candlestick chart of DIS, below, we can see that the stock is making a roundtrip from up to down. Prices trade in a downtrend below the bearish 40-week moving average line. Traders that have bet on various support areas have been disappointed. A break off the round number of $100 is likely to precipitate further declines in the weeks ahead. A return to the pandemic low of early 2020 cannot be ruled out.
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 that the share have reached and exceeded a downside price target in the $110 area.
We manipulated this weekly Point and Figure chart of DIS, below, to give us a still lower price target. Here the chart suggests a deeper dive to $59.
Bottom-line strategy: We were cautious in
our February 10 review of DIS giving a $99 price target and now we have continued our negative view of Mickey and company. Avoid the long side of DIS but don't put off that trip to Florida or a cruise.
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