Disney Share Price Outlook: Earnings to Trigger Resolution of Triangle

Summary:

Disney share price action trades within a triangle, and the earnings call on Thursday could be the key to unravelling this pattern.

Walt Disney is set to report its 3rd quarter earnings on Thursday, 12 August. Analysts would be watching to see if the company’s Disney+ streaming product could attract sufficient paying locked-down viewers to override the disastrous loss of revenue totalling $4.5billion the company incurred from the closure of its parks and studios at the pandemic’s height in 2020.

As of early July, Disney+ has a subscriber base of 110 million users. This figure represents a growth of roughly 6.4 million users between April 2021 and July 2021. The Disney share price could be in for a wild ride, depending on what the numbers show.

Disney share price is down 0.54% on the day.

Disney Share Price Outlook

Price is trading within the triangle, and traders would be looking for earnings numbers that could take the triangle apart. Disappointing earnings could produce a selloff which puts 171.33 (3 August low) at risk. Below this level, 167.35 and 157.49 (9 December 2020 high) remain the immediate support levels bears would confront.

On the other hand, a breakout smashes 180.42 out of the way. This breakout move allows 186.68 and 190.47 to come into the picture as additional targets to the north.