Half-way through last week, Disney shares have reached new highs as it extended its streak to as long as six straight weeks in the market. The company has shown outstanding performance in the business and was further pushed up north in the charts as the Entertainment giant announced a number of new films and a live action re-make of some of its animated block buster films that is set to hit the big screen in the near future.
When Disney made the announcement, the company’s value in the stock market has risen by nearly 30% which was a significant bounce from its October Lows. The early April news-related action may prove to be a trend changer. Dis is working on a lower monthly high and has broken below the key trend line support.
However, there was a sharp reversal and the company was beginning to pierce its upwards sloping 50-day moving average for the first time since the election. The prime rated stock is settling in close a key support. A clear break below the $112.00 area could cause a deep selloff.
In the near term, The DIS should keep watch out for the $112.00 area. With the aftermath of Wednesday morning’s clear trend-line break. If this level gives lee way, a deeper pullback may lie ahead. A drop down to major support near the $106.00 is not surprising. This area represents an important zone by the2016 peak and also signifies a 1/3 replacement of te huge rally off the October lows.