Sep 15, 2020, 10:11:20 AM
The Walt Disney Co. (DIS/NYSE): general review
Current trend
The Walt Disney Co. stocks showed a 4.3% corrective decline from the 6-month high of September 6. Since the beginning of the year, the issuer's quotes have lost more than 9%. It plans to open more than 50% of resort hotels by the end of September 2020. The company noted a poor start for the release of the military epic Mulan in cinemas in China due to ambiguous reviews and restrictions on cinema visits.
Over the past week, The Walt Disney shares fell by 0.56%. Over the same period, the S&P 500 was down by 1.25%.
Support and resistance
The company's shares have stabilized after a prolonged rally. At the moment, #DIS quotes are being consolidated. The issuer is testing local support and resistance levels at 130.00 and 137.00, respectively. In the near future, a technical correction of the trading instrument is not ruled out. The indicators do not give precise signals: the price crossed the MA (50); MACD started to decline. It is better to open the positions from the key levels.
Comparative analysis of the multiples of the company and competitors in the industry indicates the neutrality of #DIS.
Resistance levels: 137.00, 144.00.
Support levels: 130.00, 126.50, 122.00.
Trading tips
Long positions may be opened after the price consolidates above the level of 137.00. The closing of the profitable positions is possible at the levels 144.00, 150.00 and 155.00. Stop loss – 130.00.
Short positions may be opened after the price fixes below the level of 130.00 with the targets at 120.00–115.00. Stop loss – 137.00.
Implementation period: 3 days.
Scenario
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Timeframe
Intraday
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Recommendation
BUY STOP
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Entry Point
137.00
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Take Profit
144.00, 150.00, 155.00
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Stop Loss
134.65, 130.00
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Key Levels
122.00, 126.50, 130.00, 137.00, 144.00
Alternative scenario
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Timeframe
Intraday
-
Recommendation
SELL STOP
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Entry Point
129.90
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Take Profit
120.00, 115.00
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Stop Loss
137.00
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Key Levels
122.00, 126.50, 130.00, 137.00, 144.00
