The Walt Disney Company is perhaps one of the world’s best-known media and entertainment companies. Disney is best known for its film studios. Disney also has famous theme parks and resorts around the world. Disney owns the ABC Broadcasting Network and has recently been strong on streaming and digital services. Ownership rights also drive the company’s economic strength to some of the most recognizable cartoon characters like Mickey Mouse and Luke Skywalker. So, the longer-term prospects of the company appear to be bright.
The long-term monthly chart for Disney shows a decade-long uptrend. There have been significant pullbacks in 2015, 2020, and 2021. However, barring a brief moment in 2020, the price has respected the bottom of the long-term trend. The most recent pullback saw the price fall from a peak of $202 to around $144. There was support at that level as the $144-$153 zone has historically acted as a resistance zone. The price had broken out of this resistance level in December 2020. The resistance changed polarity and is now acting as a support. A long position offers reasonable upside with intermediate targets of $178, $188, and finally $240. A stop-loss can be placed below the support level at $140.
Position entered our long-term tracking portfolio today. Entry point at $157.93 and stop-loss $139.29 12% below the entry point. The short-term to medium take profit at $189.03, giving a potential profit of 20%.
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.