Dow component The Walt Disney Company reports earnings on Tuesday evening, with the highest volatility in nearly three years set to affect post-news price action. The setup may offer an excellent buying opportunity or valid reasons to sit on our hands, waiting for the broad tape to settle down and find a trading floor. Even so, high volatility has the power to generate outstanding entry points, so knowing key price levels in advance could pay off.
The entertainment giant has been stuck in a trading range for more than two years, underpinned by a highly profitable film library while the broadcast division has struggled, undermined by the exodus out of traditional cable and satellite broadcasting into all sorts of streaming services. Disney is set to join that exclusive club in 2019, opening its own web service to compete with Netflix, Inc. , privately held Hulu and Amazon.com, Inc.’s Prime. (See also: Disney’s ‘Last Jedi’ Box Office Fails Expectations.)
Disney stock is near multi-year triangle support and needs to hold triple digits to keep aggressive sellers from taking control. …read more
Read more here: Disney Stock Could Break Multi-Year Range After Earnings
Category: DIS, NFLX, AMZN