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Monday, April 24, 2023 2:09:55 PM
Disney (DIS) Stock Could Struggle Very Soon
By: Schaeffer's Investment Research | April 24, 2023
• DIS has pulled back to a historically bearish trendline on the charts
• Walt Disney is eliminating thousands of jobs this week
Walt Disney Co (NYSE:DIS) is in the news today after announcing a second round of job cuts will eliminate "several thousand" jobs from today until Thursday. Wells Fargo also chimed in with a bull note, raising its price target to $147 from $141.
Walt Disney stock, like the majority of Dow members today, is flat despite the news, down 0.2% at $99.35 at last glance. There is reason to believe the shares could soon move lower, however, as DIS has happened upon a trendline with historically bearish implications.
The stock has come within one standard deviation of its 60-day moving average for the sixth time in the past three years. According to Schaeffer's Senior Quantitative Analyst Rocky White, DIS was negative one month later 60% of the time, averaging a 5.7% loss. A similar move would place the equity below the $94 level for the first time since mid-March.
Now looks like a good time to weigh in with options. The stock is seeing attractively priced premiums at the moment, per Walt Disney stock's Schaeffer's Volatility Index (SVI) of 33%, which sits in the low 11th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 97 out of 100, meaning DIS has exceeded option traders' volatility expectations during the past year.
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By: Schaeffer's Investment Research | April 24, 2023
• DIS has pulled back to a historically bearish trendline on the charts
• Walt Disney is eliminating thousands of jobs this week
Walt Disney Co (NYSE:DIS) is in the news today after announcing a second round of job cuts will eliminate "several thousand" jobs from today until Thursday. Wells Fargo also chimed in with a bull note, raising its price target to $147 from $141.
Walt Disney stock, like the majority of Dow members today, is flat despite the news, down 0.2% at $99.35 at last glance. There is reason to believe the shares could soon move lower, however, as DIS has happened upon a trendline with historically bearish implications.
The stock has come within one standard deviation of its 60-day moving average for the sixth time in the past three years. According to Schaeffer's Senior Quantitative Analyst Rocky White, DIS was negative one month later 60% of the time, averaging a 5.7% loss. A similar move would place the equity below the $94 level for the first time since mid-March.
Now looks like a good time to weigh in with options. The stock is seeing attractively priced premiums at the moment, per Walt Disney stock's Schaeffer's Volatility Index (SVI) of 33%, which sits in the low 11th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 97 out of 100, meaning DIS has exceeded option traders' volatility expectations during the past year.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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