From strength to strength

Yesterday's close >$106.75 gives breakout signal I was waiting for.

Impressive turnaround since last earnings publication (stock up c. +17%):
- Mr. Iger's suggested that ESPN worries might be overdone;
- This gave the impulse the market was looking for.

Currently positive on most time frames.
Encouraging 50/200 MA cross (Golden cross).

BUY here.
Initial target $114 (+$6.56/share).
Stop-loss $100 (-$7.44).
RR 0.9x only but might improve upon further potential upside breakout above $114.
Alternatively buy half position here and increase position after earnings/further breakout.

Comment:

Stock now technically looking positive on all time frames, if slightly over-extended (RSI c. 75) in the shorter time frame. Slight consolidation in this context is healthy. KEEP LONG ahead of earnings in a month.

Trade active:

Momentum fading. At the close of yesterday the short term time frame started turning negative. If the stock trades below 106.90, the breakout configuration will be potentially compromised. Raise stop-loss to 106.50.

Comment:

So the stock has held its ground in the end, and was taken higher yesterday by Morgan Stanley who upgraded it along with the sector, notwithstanding the negative sector news from Sony ($1bn write-down on movie business). Closing above 10 was an achievement, but we are getting closer to the significant 114 resistance and target price. Stay long for now and into earnings. Maintain stop-loss at $106.50/Share. Next major hurdle for the DIS stock will be a breakout above 114.

Comment:

Stock behavior has been solid, and DIS has been outperforming the market on the downside. Beauty and the Beast returned production costs on day one and is already a block-buster - From day 1. Stay long and keep stop-losses at 106.50 and 109.50.