DIS Long-term outlook
DIS share prices are moving up 4.5% in November as it climbed from $98.13 to $102.55. The company reported earnings miss on 9th November. Earnings per share come out at $1.07 vs. $1.12 expectation and revenue was $12.78 billion vs. $13.23 billion. The result brought share prices down after the report. However, the company announced plan to take on Netflix the day after which brought back optimism.
The plan involves “substantially” lower prices in streaming services than Netflix. Previously, DIS also mentioned discontinuation of the contract to stream Disney movies on Netflix by 2019. It is not clear whether Disney could take on Netflix in the digital streaming ground, but it is better strategies to shift its ESPN cable division which in slow death to a new venture in digital streaming.
Click here to see DIS October analysis
New Month
Monthly chart
We have a valid bounce from the monthly SMA 50 which brought DIS share prices up above $100.00 handle. The upward movement has momentum and could continue in coming months. Meanwhile, there is the reaction at the horizontal line we drew. It is a profit-taking reaction, and traders could disregard it as long as the share prices closed higher than previous month high.
Weekly chart
DIS on the weekly chart bounced from the bottom of channel and WSMA 200. The share prices reach the top of the channel and hesitate to continue its upward movement. There is WSMA 50 present also as resistance. Following the latest trend, it looks like DIS will resume its downward movement inside the channel.
Daily chart
There was rejection on the daily chart as DIS touched the daily SMA 200. The share prices stay lower after the rejection but support by daily SMA 100. Will the share prices continue its descent from current level?
Trade plan
Bullish traders might want to stay sideline and watch daily SMA 100 for support. If the level was broken, it might take a long time for the bull to return to the market.
The bearish position could be taken near the top of downtrend channel.