Disney Bulls Hold an Edge Into Earnings

Disney Bulls Hold an Edge Into EarningsBillion dollar Marvel and " Star Wars " box office receipts failed to overcome cord-cutting anxiety into the second half of 2016 , when the stock lifted off two-year range support in the lower $90s , generating a recovery wavethat posted the second lower high since 2015 in April 2017.The stock has not touched either end of the range-bound pattern in the past 18 months , with a higher low and lower high generating a holding patternthat will eventually give way to a long-term trend , higher or lower.DIS Short-Term Chart (2015 – 2017)The uptrend hit an all-time high in 2015 and rolled into a vertical decline triggered by shrinking sports viewership at ESPN , a profitable divisionthat analysts expected to grow despite the millennial transition into net-based programming.The August 2015 trading range between $99.78 and $122.08 contained price action into a February 2016 breakdownthat stretched support into the upper $80s , ahead of quick recovery wave.The stock has remounted the 50- and 200-day exponential moving averages (EMAs) following more than two monthsbelow those levels , generating a price floor near $106 that could support even higher prices after earnings.The monthly stochastics oscillator rolled into a long-term sell cycle in April 2017and could reach the oversold level in the next one to three months.Disney stock is back on top of intermediate and long-term support after a second quarter decline dropped the stock more than 13 points.