I spy with my eye a major trend line breakout on Walt Disney Co (DIS) shares.
Can it sustain the climb from here?
Walt Disney Co (DIS): Daily
Check out that long-term trend line break and gap up!
It looks like Disney shares have bottomed out and are ready to rally, as the stock price busted through a descending trend line that’s been holding since September last year.
The company’s latest earnings report boasted of stronger-than-expected subscription numbers, making it one of the frontrunners in the streaming wars.
As it turns out, Disney+ enjoyed an addition of 14.4 million subscribers, bringing the total to 221 million versus Netflix’s 210.67 million. The Force is strong with this one indeed!
In addition, the company shared plans to raise streaming prices while also launching an ad-supported subscription tier, likely adding to revenues down the line.
While that sounds all well and good for longer-term profitability, DIS shares might not be out of the bearish woods just yet.
The 100 SMA is still below the 200 SMA to signal that the path of least resistance is to the downside or that there’s a chance the selloff might resume. The stock has yet to clear the next upside barrier at the 200 SMA dynamic inflection point to confirm a reversal.
Also, Stochastic is already indicating overbought conditions and looks ready to move south. Just keep an eye out for the gap getting filled and whether or not the former trend line holds as support!
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