Walt Disney Co (NYSE:DIS) Trading Outlook

Walt Disney Co (NYSE:DIS) Trading Outlook

Walt Disney Co (NYSE:DIS) Trading Outlook

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 97.86.

The projected upper bound is: 98.95.

The projected lower bound is: 92.25.

The projected closing price is: 96.60.

WALT DISNEY CO closed up 0.920 at 96.670. Volume was 51% above average (neutral) and Bollinger Bands were 2% wider than normal.

Open High Low Close Volume___
95.660 96.850 95.300 96.670 3,294,383

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 95.82 97.84 101.78
Volatility: 13 15 24
Volume: 2,461,881 2,229,384 2,503,522

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


WALT DISNEY CO is currently 5.0% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of DIS.N (mildly bearish). Our trend forecasting oscillators are currently bearish on DIS.N and have had this outlook for the last 9 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

Candlesticks are Bullish

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.

During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with WALT DISNEY CO). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

Momentum is Strong

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 75.3425. This is not an overbought or oversold reading. The last signal was a buy 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 46.91. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 4 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -5. This is not a topping or bottoming area. The last signal was a buy 4 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.

The Walt Disney Company is a diversified entertainment company. The Company’s business segments include Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. The Media Networks segment includes cable and broadcast television networks, television production operations, television distribution, domestic television stations, and radio networks and stations. The Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida, the Disney Cruise Line and Adventures by Disney. The Studio Entertainment segment produces live-action and animated motion pictures, musical recordings and live stage plays. The Consumer Products segment engages with licensees, publishers and retailers to design and sell a range of products based on the Company’s property through its licensing, publishing and retail businesses. The Interactive segment creates and delivers branded entertainment and lifestyle content across interactive media platforms.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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