Shares Of Walt Disney Could End This Week With A Buy Signal. Here’s How To Trade The Stock.


SAN FRANCISCO, CA – OCTOBER 4, 2013: The Disney Store on Stockton Street in San Francisco, … [+] California, sells official Walt Disney Corporation merchandise on October 4, 2013 in San Francisco, California. (Photo by Robert Alexander/Getty Images)

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Walt Disney DIS Co (DIS) closed Monday at $93.14, above a weekly value level at $88.73. The weekly chart will be positive given a close on Friday above its five-week modified moving average at $93.71. The upside shown on its daily chart is monthly pivot at $100.77. The upside on its weekly chart is the 200-week simple moving average or ‘reversion to the mean’ at $133.92.

Disney is not a value stock. Its p/e ratio is 27.77% and the company does not offer a dividend, according to Macrotrends. The company missed earnings-per-share estimates in two of the last five quarters but has nine quarterly beats in the last twelve quarters.

The Daily Chart for Disney

Daily Chart for Disney


Courtesy of Refinitiv XENITH

The daily chart for Disney shows the stock was under a death cross between September 20, 2021 and March 14, 2023. This ‘sell signal’ occurred when the 50-day simple moving average fell below the 200-day simple moving average. This was a reason not to own this popular stock until it bottomed out at the end of 2022.

The stock was under the 200-day simple moving average from September 21, 2021 through March 14, 2023. The 200-day SMA was a magnet between January 23, 2023 and May 10, 2023.

The horizontal line near the bottom of the chart is this week’s value level at $88.73. The second horizontal line at $100.77 is the monthly pivot for June. The two horizontal lines in the middle of the chart are the semiannual and annual risky levels at $141.51 and $146.01.

he 50-day and 20-day simple moving averages are now at $96.06 and $98.95.

The Weekly Chart for Disney

Weekly Chart for Disney


Courtesy of Refinitiv XENITH

The weekly chart for Disney is neutral. The stock is just below its five-week modified moving average at $93.70 and is well below its 200-week simple moving average or ‘reversion to the mean’ at $133.92. The 12x3x3 weekly slow stochastic reading is rising at 22.51, moving above the oversold threshold 0f 20.00. Remember that stochastic values range between 00.00 and 100.00 with a reading above 80.00 overbought and a reading below 20.00 oversold.

Trading Strategy: Buy Disney on weakness to its weekly value level at $88.73. Reduce holdings on strength to its ‘reversion to the mean’ at $133.92.

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