Walt Disney Company (DIS) Shares Surge Over 11%

On 14 November, Walt Disney Company (DIS) released an investor report that exceeded analysts' expectations:
→ Earnings per share: Actual = $1.14; Expected = $1.10; Year-on-year growth = +39%.
→ Revenue: Actual = $22.57 billion; Expected = $22.42 billion.

The stock market responded positively, with DIS shares rising:
→ On 13 November, prior to the report's release, the stock closed at $102.56.
→ By the end of the week, DIS closed at $114.94, a gain of more than 11% post-announcement.

The company also reported an increase in its streaming subscribers, reaching 200 million. Investors view this growth as a positive signal for Walt Disney Company, similar to the optimism shown towards Netflix (NFLX), which we discussed on 15 November.

Will DIS shares continue to rise?

Technical analysis of DIS's daily chart indicates that in 2024, price movements have formed a descending channel (shown in red):
→ In late October, market volatility was low, consistent with price stabilisation near the channel's median (indicated by the arrow).
→ Following the news of the earnings report, the stock price climbed to the upper boundary of the channel.
→ The RSI indicator has reached its highest level in years.

Given this, it is plausible to suggest that DIS shares are in a position vulnerable to a correction. Should a correction occur and remain minor (e.g., without significantly dipping into the bullish gap formed last week), it could signal sufficient confidence among bulls to attempt a successful breakout above the channel’s upper boundary, potentially reaching key resistance near the psychological $120 level.

According to TipRanks:
→ 15 out of 30 analysts recommend buying DIS shares.
→ The average 12-month price target for DIS is $122.