Mickey Mouse might be getting out of the sports business. That’s good news for Disney (DIS) shareholders. (December 06, 2016)
DIS
We were looking at Disney ( NYSE:DIS ) yesterday in the Chart of the Day and I mentioned, how if the stock starts breaking above $100.00 this is a good thing, the stock will probably move higher from there. And the reason being, on this $100.00 thing, that is where you will see orders clustered around here. “Well if Disney gets up to $100.00 I will sell.” I think that is really what happened here. It peaks up a little bit and then pulls back. The same thing yesterday and then finally today, well we finally chewed through all those orders and now this stock is free to move higher.
I think part of the reason why the stock is moving higher, other than just a general lift to the market, is the ongoing conjecture that they may ditch ESPN, which wouldn’t be a bad thing since 9 million subscribers have already ditched ESPN in the last 3 years, I would be one of them, it sucks. Anyway, this is moving above the $100.00 level. You look at the weekly chart, it has been in a downtrend for quite a while. Now it is breaking out above there, this is the 40-week or 200-day moving average. Boom! Boom! This time time around, for what? For 5 weeks this has now been above the 200-day moving average so I think this is a bottom. If they do end up ditching ESPN that is going to do a lot for their balance sheet. And in this type of a stock, it is not like a biotech stock, this thing does trade on fundamentals and what money managers think are the prospects for Mickey Mouse.
So right now, here, I would suggest if you want to be long the stock keep a stop, put it down here below the 200-day moving average. Give the stock a little room to wiggle. The whole idea is though, that the stock broke out above the 200-day moving average, and this box works, between 97.00 and $100.00, so now this is breaking out the top of the box. Well if it falls in don’t get shaken out at $99.00 or even $98.00. Because all it is doing is telling you, “Hey man, the box is still alive. If it falls out of the bottom of the box then you can go ahead and sell that thing. I think this stock is working. I think it is going to continue to work. For those of you that are ESPNers, maybe buy some of the stock and you will pay for your subscription.
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