To The Moon

Hi everyone. Today I’ll be covering the following company:

Walt Disney Company (NYSE: DIS)

The last time I covered DIS was over a year ago, and that was a very short-term outlook of price action. 1 year later, I take a more measured approach towards analysing the price action here:

DIS has generally been putting in a series of higher highs and higher lows, which is a sign of a healthy uptrend. It has a 15-year support trendline (in blue) dating back to 2009 which was breached during the Aug-Oct’23 pullback before being reclaimed in Jan’24.

The daily chart is where the magic happens. Notice the current consolidation pattern with higher lows but lower highs (green trendlines). DIS retraced to fill the 99.28-106.80 gap almost to a tee, before putting in a bullish divergence at lows. This should see a move back towards the resistance trendline and a retest of prior support-turned resistance at 106.80. A breakout of resistance is key, as it would see a move to fill the 107.88-114.15 gap.

Ultimately, a breakout of consolidation should see a longer-term move to 141.87, in line with the inverse head and shoulder/rounding bottom setup that I’m seeing.

However, a breakdown from consolidation could see a move back towards the 15-year support trendline and a retest of support at 92.53.

Given the favourable technical setup, and the fact that it has spent a substantial amount of time consolidating while the indices marched higher, I am initiating coverage on DIS with a BUY sentiment.

Sentiment: BUY (New)

Summary (with Price Targets - NFA):

• Longer-term inverse head and shoulder/rounding bottom setup with a measured move towards 141.87 and higher, provided that the stock breaks out of consolidation

• Key level to watch for a breakout and continued upside would be the prior support-turned resistance at 106.80, with a breakdown of consolidation likely resulting in a retest of support at 92.53

All right, that’s all for this newsletter. Till next time!

@TigerWire @TigerStars @CaptainTiger @MillionaireTiger @TigerEvents

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