Walt Disney Finds Support at Old Peak as Streaming Takes Off
Unless you've been asleep like Snow White for the last year, you've probably heard about the Disney+.
DIS
new streaming-video service surprised everyone last month by adding over 10 million subscribers in its first two days. That drove the Magic Kingdom to new record highs above $150, followed by a pullback and three weeks of consolidation.
The last earnings report beat estimates across the board thanks to strength in its other businesses like films (The Lion King) and amusement parks.
Now DIS has pulled back to hold its old July peak around $147. Traders wanting a little more confirmation might want to wait for a close above last week's high of $148.93. They can also view the recent low around $145 for risk management.
Interestingly, the chart somewhat resembles
TSLA
before its bullish continuation recently. Remember TSLA also had a sharp turnaround rally from its 200-day simple moving average (SMA). It also pulled back to hold its 30-day SMA and had oversold Stochastics before continuing its bullish move to new highs.
DIS
new streaming-video service surprised everyone last month by adding over 10 million subscribers in its first two days. That drove the Magic Kingdom to new record highs above $150, followed by a pullback and three weeks of consolidation. The last earnings report beat estimates across the board thanks to strength in its other businesses like films (The Lion King) and amusement parks.
Now DIS has pulled back to hold its old July peak around $147. Traders wanting a little more confirmation might want to wait for a close above last week's high of $148.93. They can also view the recent low around $145 for risk management.
Interestingly, the chart somewhat resembles
TSLA
before its bullish continuation recently. Remember TSLA also had a sharp turnaround rally from its 200-day simple moving average (SMA). It also pulled back to hold its 30-day SMA and had oversold Stochastics before continuing its bullish move to new highs.