Hold, Go Long if Parks Successfully Open

1 thg 6, 2020

Technicals:
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$117 is approximately the new support level, which also correlates to around a 15% price correction from Q1 high's. Prices appear to be consolidating around this level with no significant breakthrough.

Fundamentals:
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While Disney benefited from the recent surge in streaming, its parks and products segment (accounting for ~25%) has significantly lost revenue. Data on Disney's parks re-opening performance will dictate medium term pricing as investors look toward Disney's Q4 earnings.
statista.com/statistics/193140/revenue-of-the-walt-disney-company-by-operating-segment/

Strategy:
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Hold current shares and watch for a horizontal pull across the short term, purchasing if price remains around $117 in conjunction with long term upward signals.

1 thg 6, 2020

Ghi chú

The market has already returned to its early March prices, effectively completing a 10-15% price correction. From this point forth, many stocks that have returned to similar levels will be trading in a more rational response to fundamental performance. Earnings reports, market reactions, and basic trends will be more important than the overall bullish attitude.