- Summary:
- NYSE: DIS is retesting the key demand zone of $78-$86. The bullish divergence on the RSI is pointing towards a major bounce in Disney stock.
Disney stock price slid 1.8% after making a new lower high on Monday. The stock of the entertainment conglomerate is now trading at its lowest level since August 2020. A look at the chart reveals the price has dipped inside the $78-$86 demand zone, which may result in a bounce.
US equities are not having the best of times as the Fed’s hawkish stance is causing investors to offload their stock holdings. As a result, the NASDAQ 100 index lost 232 points, while the S&P 500 was down 1.3% on Tuesday. The shares of Disney are priced at $80 and are down 2% from last week’s high.
Production Houses And Writers Guild Reach Agreement
On Sunday, The writers guild and major production houses reached a tentative agreement after the production houses offered a payment of $233 million annually for three years. The union members have been asked to vote on this proposition by 8th October. Disney stock is retesting its 3-year lows right now.
In other news, Disney plans to invest around $60 billion in its parks and cruises over the next decade. This move means that Disney remains focused on growth by adding more capacity in its parks and cruises division rather than relying on prices alone.
Walt Disney Stock Price Forecast
As mentioned earlier, the NYSE: DIS is currently trading inside its long-term support and major demand zone of $78-$86. The chart also reveals the price respecting the downward trendline and its inability to break above it.
A bullish divergence has formed on the RSI, and the Money Flow Index. This shows that there are strong chances of a bounce from the current levels. A breakout above the downward trendline will flip the Disney stock price forecast bullish and pave the way for a retest of the 200 MA, which lies around $93.
Disney Daily Chart
