DIS Long-term outlook
January has been a sweet month for DIS as the stock increase its prices from $105.30 to $110.65. The increase in stock prices contributed by two upgrades by Goldman Sachs and Morgan Stanley. The upgrades come after upbeat outlook on ESPN subscription, strong upcoming series expected in coming years. The note mentioned 4 Marvel films, 2 Star Wars films, and 2 Pixar films on the schedule.
The Recent news comes from Disney termination of PewDiePie who is its biggest youtube star; the cut comes after anti-semitic videos produced by the star. Another news to watch is the company intention to snap the Paris theme park.
Improving outlook in DIS fundamental helped the company to secure new bullish trend. If things are moving in line with expectation, we might see DIS printed new record high above $122.08.
Click here to see DIS January analysis
New Month
Monthly chart
DIS upward trend continued in January and brought the price closer to trendline resistance. The shares expected to touch $115 before reversing, but February price action looks bearish. The bearish movement in the first half of February might lead the price down before it touches the trendline.
Weekly chart
The trend is up on the weekly chart with trend line resistance as the target. There is a possibility of correction before DIS reach the trendline and $105 – $106 will provide support if the price reaches it.
Daily chart
While it is extremely bullish for the stock, DIS has moved outside of its bullish channel and ready for a further correction. There is a yellow bullish trendline which supported the price, but it looks like the price might be able to close lower and drive the price toward $105 – $106 support.
Trade plan
The bullish position could be taken at the yellow trendline in the daily chart. Another best position to take is at the $105 – $106 support area.
The bearish position needs to wait until the price move near the white bearish trendline. Though traders need to be careful as long-term outlook for DIS is extremely bullish.