Date: 10 May 2019

Disney published its earnings last Wednesday after the closing bell. The results are impressive. At US$1.61 per share in adjusted earnings for the quarter, the share exceeded many expectations. Turnover also exceeded the estimates of many analysts.

The many visitors to Disney’s amusement parks are reviving the business, and the last blockbuster movie is putting a lot of money in the tills. The management also seems to have played the right hand in the takeover of the competitor 21st Century Fox. From November, the streaming service Disney+ will open the battle with Netflix and Co.

The current good results have caused the shares to rise by more than 30 percent compared with this time last year.

A look at the chart shows that it is currently trading above the critical support at US$132. This should be decisive for the further development in the coming days.

If the bulls continue to dominate, then the first resistance could be at US$137.50. If the market overcomes this resistance easily, then the next point of possible resistance could be the all-time high in the US$142 area. If the bulls can drive the market further up, then it would reach uncharted territory. Further resistance could then arise at around US$146.

However, if the bulls fail to keep the market above the US$132 threshold, then support could be provided in the US$126, US$121 and US$116 areas.

The MACD oscillator showed a bearish cross on May 3. The histogram is negative.

 

DIS.US Daily Chart | Source: ActivTrader

DIS.US Daily Chart | Source: ActivTrader

 

Written by Daniel Schuetz, External Analyst, ActivTrades

*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided.