Don’t buy the dip in Disney (SYM: DIS) just yet, we said on May 9
“Over the last few days, Disney gapped from about $117 to a low of $105.58. All thanks to disappointing guidance. But according to Barclays, the pullback is overdone. For one, according to Barclays, the concerns about theme park operating income is overblown. Two, the firm is still optimistic about Disney’s streaming segment results,” we added.
We also said we wouldn’t buy just yet – which turned out to be a better call than Barclays’.
From May 9 until now, shares of Disney would fall even more, from about $107 to a low of $101.39. While we respect firms like Barclays opinion, they should have taken our other advice to wait for confirmation of trend change before buying.
Even now, as Disney attempts to form a base at $103.33, we’d wait for confirmation again – which we’re watching for closely. All we can tell you at the moment is that DIS is technically oversold on RSI, MACD, and Williams’ %R and could soon starting to push higher.
But again, we have to wait for confirmation of trend change.
