The Walt Disney Co. shares have been rising since the second half of June and have now risen to 112.50. Prices are supported by positive corporate reports presented by the company and July data on inflation in the US.
Fiscal Q3 data were better than expected, with earnings per share of 1.09 dollars against 0.96 dollars and revenue of 21.5B dollars against 20.96B dollars. Investors were pleased with the significant growth in subscribers of The Walt Disney Co streaming services. The company's services are now used by 221.0M people, which exceeds the statistics of the main competitor Netflix Inc. The positive dynamics allow us to hope that the crisis of streaming services, expected after the end of the pandemic, will not be so serious.
Despite the statistics, the company's management acknowledged the existence of several serious problems: in particular, inflationary pressure increased the company's costs by 1.1B dollars, and forecasts for further growth of the Disney+ audience for 2024 were adjusted to 215.0–245.0M people.
The US inflation data published yesterday, which recorded a slowdown in its growth, also supported the issuer, as investors hope that the peak of price growth was already passed and inflation would begin to slow down, allowing households to spend more money on entertainment.
The trading instrument is testing 112.50 (Murrey [8/8]), the breakout of which will cause further growth to 115.62 (Murrey [+1/8]) and 118.75 (Murrey [+2/8]). If the pivot level 106.25 (Murrey [6/8]) is broken down, the decline may resume to 103.12 (Murrey [5/8], middle line of Bollinger Bands) and 100.00 (Murrey [4/8]). This movement variant seems less likely, as the indicators point to the continuation of the upward trend: Bollinger bands and Stochastic are directed upwards, and the MACD histogram is increasing in the positive zone.
Resistance levels: 112.50, 115.62, 118.75. | Support levels: 106.25, 103.12, 100.00.