Disney has failed to live up to investors expectations this year. The media and theme park giant should have been perfectly placed to take advantage of the re-opening trade. However, since the start of the year, DIS has lost 1.71%, despite US stock markets making new highs. But the Disney stock price may get the bullish kicker it desperately needs after tonight’s close when the company reveals its fiscal third-quarter earnings.
Wall Street analysts expect Disney to report revenue of $16.8 billion for the period, with Earnings-per-share (EPS) of $0.56.
And for Disney to stay on track to achieving the analyst’s consensus 12-month price target of $212.60, it will need to give investors something to be hopeful for in tonight’s data.
DIS technical outlook
Looking at the daily chart, we see the Disney stock price has been trading in a narrowing triangle pattern for most of the year.
The descending top edge from the March $203.02 high is currently seen at $182.00. With the rising trend line from December 2020, offering support $171.50.
Furthermore, the tightly grouped key moving averages are hugging the price. The 200-day at $173.90 lends support to the rising trend line. Whilst, the 100 DMA at $179.99 adds to the resistance above the market.
Considering the narrowing channel and the proximity of the major averages, Disney should soon break out of the range. Clearance of the trend resistance should set the stock on a path towards $200. Furthermore, if DIS delivers tonight, the all-time high could soon fall, and an optimistic technical target would aim for $225.00.
That being said, Disney’s last trading update disappointed the market, and should that happen again, the bears would look to fill the gap on the chart at $155.00.
Therefore, the stock could be in for a rollercoaster ride in the days and weeks ahead.
Disney stock price chart (Daily)
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