Let the Kingdom Work its Magic

The last time we looked at Disney was back in late-March, as it flirted with all-time highs in this post. We were on watch for the major breakout, but clearly the quickness with which it exceeded those highs was impressive indeed and likely indicative of very bullish demand.

Disney is down more than 5% today after earnings. However, when you look at the updated monthly chart below,  you can see an expected consolidation of the recent breakout. Also note the bull flag appearance since September. I’d look for $45 to become the new floor for Disney, which would be an excellent entry point for investors. The larger point is to not lose sight of a Dow component with an all-time breakout still clearly intact.

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