Disney (DIS) Posts a Surprise Profit – Cycles Point to an Important Bottom

Walt Disney (DIS) reported earnings after the bell on Tuesday.

Disney reported adjusted EPS of $0.08, which beat consensus estimates of -$0.64. Revenue came in at $11.78B, which missed estimates of $12.37B.

Disney announced they now have 60.5M subscribers to the new Disney+ platform.

Disney’s CEO, Bob Chapek, said the company was on track to hit its goal of between 60M – 90M subscribers 4 years earlier than originally anticipated.

Most of Disney’s other business units continue to struggle due to the COVID-19 pandemic.

Revenue from Parks, Entertainment and Products were down 85% Q/Q and Studio Entertainment was down 55% Q/Q.

Disney closed Wednesday’s session at $127.61, which was up 8.8% on the day. Let’s review our weekly cycle analysis.

Walt Disney Company (DIS) Weekly Chart

disney stock price forecast cycles higher targets trends positive_investing image august 5

At askSlim we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

askSlim Technical Briefing:

The weekly cycle analysis suggests that DIS has formed an intermediate-term low and is now in a rising phase. Weekly momentum is positive.

disney stock rally strong earnings report bullish outlook higher forecast august 5

On the upside, there is an intermediate-term resistance at 137.50.

On the downside, there is a rising intermediate-term support at 118.22 followed by another zone of support from 110.74 – 104.69.

For the bears to regain control of the intermediate-term, we would need to see a close below cycle low support at 113.37.
askSlim Sum of the Evidence:

DIS has a very bullish weekly cycle pattern with positive momentum. Given these conditions, there is a likelihood that the stock tests 137 by November of this year.

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