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May 12 Chart of the Day - Disney

Should Disney (DIS) long term investors be worried about the stock price's recent and continued battering or should they see it as a time to add more to their portfolio?  Short term traders have had excellent conditions to trade its volatility in both directions between $90 and $115.

The question becomes when will that range break and in which direction?

There's a pretty clear technical line in the sand in the $80-88 area that if it breaks down below there price could continue its two year descent into the $60-$75 area.

But isn't that why Disney's board of directors brought back their 72 year old previously retired CEO Bob Iger to right the ship? That's a resounding "they hope so..."

Fundamentally, Iger is orchestrating a strategic turnaround with the company's recent corporate restructuring and cost reduction initiatives that included layoffs.

Global theme park revenues are up since the pandemic lows but Disney+ margins have become a keen focus for Iger and his management team. 

Technically speaking, from a higher time frame weekly view point, demand for the stock price seems to have been drained around the line in the sand area so it will be interesting to see whether or not the Disney bulls can step back in for a sustained push to the upside or if they completely drop the ball and the downward spiral continues.

Only time will tell for sure.

What do you think?  We'd like to hear from you in the comments sections.

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