Don't Ignore This Chart!

Investors Cut the Cord on Disney


Dow component Disney (DIS) is feeling the heat today with a triangle break and move below the 200-day moving average. 

Disney has been one of the weaker stocks in the Dow Industrials over the last few years. The stock peaked way back in August 2015 and formed lower highs the last 2+ years. Most recently, the January high peaked below the April 2017 high.  

The stock appears to be breaking down with the third move below the falling 200-day SMA and a triangle break. This is not the most symmetrical or picture-perfect triangle, but the shaded area marks a consolidation and the stock broke through this consolidation. 

Candlestick aficionados can note a rare meeting lines candlestick pattern on February 26th and 27th. The open of the long white candlestick (108) is equal to the open of the long black candlestick. 

The indicator window shows the performance line for Disney and SPY over the last seven months. SPY is up a handsome 12.89%, but Disney is up less than 2% and seriously underperforming. 

Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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