Today, I am going to be analyzing the stock of The Walt Disney Company (NYSE:DIS), who reports earnings after the bell today.
Like many of us, I grew up with Mickey and Donald and the rest of the Disney characters. Disney as a company is loved by folks around the world and has a strong brand. That said, the stock can and does have corrections and it may be set for another correction after the earnings come out tonight. The market itself seems to have a little bit of a negative tone, which is indicating to me to be on the sidelines in this stock at the moment.
The recent red weekly Trade Triangle for Disney is the first red flag that the stock may have put in a top. While not as significant a change as a monthly Trade Triangle, it should not be ignored. The second red flag for Disney is the glaring negative divergence between price action (number 6) and the MACD (number 8). This is not a good sign and the divergence could be a warning of an impending drop in this stock.
This in-depth analysis of The Walt Disney Company (NYSE:DIS) is not saying that this stock is going to collapse. I am only reporting on certain technical elements that could cause this stock to come under downside pressure. Continue reading "Will The Force Be With The Walt Disney Company (NYSE:DIS)?"