Current trend

The shares of The Walt Disney Co., one of the leaders of the global entertainment industry, are trading in a corrective trend at 92.30.

The company has concluded agreements with the Directors Guild of America that could lead to additional capital expenditures of 6.0 billion dollars in 2024, and the cost of licensed content produced could grow to 25.0 billion dollars. Additional income can be obtained from expansion into the Indian television market, where the management of The Walt Disney Co. owns the rights to broadcast tournaments (ICC) of cricket – one of the most popular games in the country – for 2024-2027: the World Cup audience is estimated at 518.0 million, and 59.0 million people simultaneously watched the final match via streaming the Disney app. The broadcast was free, but further ones will be carried out by subscription through the Hotstar app.

The Walt Disney Co.'s financial report reflected revenue of 21.24 billion dollars with a forecast of 21.37 billion dollars and earnings per share (EPS) of 0.82 dollars, beating expectations of 0.71 dollars.

Support and resistance

On the D1 chart, the instrument is trading significantly above the global descending channel with dynamic borders of 86.00–74.00.

Technical indicators continue to hold a stable buy signal, despite the local correction: the fast EMAs of the Alligator indicator continue to be held at a stable distance from the signal line, and the AO histogram is in the buy zone, continuing to form correction bars.

Support levels: 90.90, 86.00.

Resistance levels: 96.00, 102.80.

Trading tips

If the corrective growth of the asset continues and the price consolidates above the resistance level at 96.00, one can open long positions with the target at 102.80 and stop-loss at 94.00. Implementation time: 7 days and more.

If the corrective decline of the asset continues and the price consolidates below the local support level at 90.90, one may open short positions with the target at 86.00 and stop-loss at 93.00.