Why Disney Stock Looks Headed For New 52-Week Lows

Walt Disney Co DIS stock was losing ground in sympathy with the general market Thursday, which saw the S&P 500 gap down and begin to fall further intraday.

Between July 9 and Aug. 23, Disney will offer a luxury 24-day world tour of its parks and some select historical sites to 75 travelers. "Disney Parks Around the World: A Private Jet Adventure" is valued at $109,995 per person and aimed at wealthy travelers who want an immersive experience.

 bTwitter, Inc TWTR employees won’t be experiencing Disneyland next year for a previously scheduled companywide retreat. The social media company cancelled the event, citing cost-cutting measures to reduce corporate travel amid a hiring freeze.

Tesla, Inc TSLA CEO Elon Musk has vowed to cut costs at Twitter and take the company private if his deal to buy the company goes through.

While numerous companies have started to cut costs as recession fears heat up, luxury travel appears to be unaffected and Disney’s plans to cater to that market could help the company offset any downturn in regular visitors at its parks.

Traders and investors may see trouble ahead for Disney because the stock has plunged about 53% since reaching an all-time high of $203.02 on March 8, 2021. Disney is trading just slightly above the 52-week low of $93.10. If the bear flag pattern the stock looks to be settling into becomes recognized, Disney could fall lower still.

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The Disney Chart: Disney’s bear flag began to form on June 8, with the pole formed between that date and Tuesday and the flag forming over the trading days that have followed. If the pattern is recognized by the algorithms, the measured move is about 15%, which suggests the stock could fall toward the $82 mark.

• Disney is also trading in a fairly consistent downtrend, with the most recent confirmed lower low printed on June 7 at $106 and the most recent lower high formed at $109.36 on June 8. If Disney breaks bearishly from the bear flag pattern and makes a new 52-week low, Wednesday’s high-of-day will serve as the next lower high within the pattern.
• Disney has two gaps above on its chart, with the closest gap falling between $133.93 and $135.13. Gaps on charts fill about 90% of the time so it’s likely the stock will trade up to fill the empty trading range at some point in the future, although it could be some time before that happens.
• Disney has resistance above at $100.90 and $108.50 and support below at $92.71 and $79.07.

Photo via Shutterstock.