Through TheFLY's Eyes: The Walt Disney Company
from Theflyonthewall.com












A Technical View

Disney (DIS) has been working hard at rallying for several years now. It has become range bound between the $23 and $30 dollar area. The $30 area is one that is providing major resistance. The stock last touched this area and then backed off to $23 over the course of the remainder of the year.

If the stock can break above $30 it would be the most bullish development since the stock moved off its lows in 2002. Why? It would place the stock back into the upper end of its range from $30 to $45 and the odds would favor an attempt back to old highs on a breakout from the current trading range.

If the stock gets turned back here it is not necessarily a disaster, it may simply mean the stock returns to the lower end of its trading range, marking time until a more positive catalyst appears.

Chart created with Equis MetaStock