• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Has Disney's Stock Lost Its Magic?

House of Grouse: A return to the pandemic low of early 2020 cannot be ruled out.
By BRUCE KAMICH
May 12, 2022 | 09:33 AM EDT
Stocks quotes in this article: DIS

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.
 
(Disney is a holding in the Action Alerts PLUS member club . Want to be alerted before AAP buys or sells DIS? Learn more now. )
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Digital Entertainment | Resorts and Hotels | Television Production/Distribution

More from Stocks

This Is No Market for Commitment

James "Rev Shark" DePorre
Jul 6, 2022 4:55 PM EDT

After Tuesday's rotational moves, Wednesday was choppy. Here's why this is not a time to make long-term trades.

This Won't Hurt a Bit: Moderna Could Rally 25% From Here

Bruce Kamich
Jul 6, 2022 2:59 PM EDT

The stock is ready to make a recovery rally.

Move Over Minnie, I've Got a Love-Hate Relationship With Disney

Stephen Guilfoyle
Jul 6, 2022 1:00 PM EDT

DIS has been no day in the park for investors -- in fact, it's been acting more than a little Goofy lately. But I see this ride down starting to turn.

DoorDash Looks Ready to Make a Dash to the Upside

Bruce Kamich
Jul 6, 2022 12:35 PM EDT

Let's review the charts and indicators.

Rocket Cos Won't Be Blasting Off From Here

Bruce Kamich
Jul 6, 2022 12:00 PM EDT

Let's check out the charts and indicators.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:01 PM EDT PAUL PRICE

    A Recent Director Buy in Children's Place (PLCE)

    Four of the most recent insider trades in Children...
  • 07:34 AM EDT PAUL PRICE

    A $525,000 Vote of Confidence on Macerich (MAC)

  • 09:49 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Stop Wishing, Hoping, and Praying and Take Control...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login