Disney sharpens decline - Analysis - 12-05-2022

Disney's stock (DIS) declined after the company reported forecast-missing quarterly earnings, while barely surpassing estimates for subscribers. 

Disney + closed the quarter with 137.7 million subscribers, up 7.9 million from the previous quarter, half of them on the Disney + Hotstar in India, which yields lower earnings that other regions, with Wall Street expecting 5.3 million more subscribers. 

The stock kept declining amid the dominance of the main downward short-term trend, with negative pressure from the 50-day SMA, coupled with negative signals from the RSI, marking a loss of 2.29% and settling at 105.21, with trading volumes surpassing 29 million shares, compared to the 10-session average of 16.2 million shares.

Therefore we expect more losses for the stock, targeting the support of 98.86, provided the resistance of 117.23 holds on.

Expected trend for today: Bearish.