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.

Sign up for our FREE newsletter
and receive our best trading ideas and research

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.


Interested in askSlim?

Get professional grade technical analysis, trader education and trade planning tools at askSlim.com. Write to matt@askslim.com and mention See It Market in your email for special askSlim membership trial offers!

Twitter:  @askslim

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.