Disney’s Stock Plummets After $60 Billion Theme Park
20 Sep 2023
After the company announces an investment in theme parks, Disney’s stock drops.
Following the announcement that it would invest $60 billion over the following ten years in expanding its theme parks, cruise lines, and other businesses, Walt Disney’s stock price dropped.
The stock had one of the poorest performances among the blue-chip Dow stocks as it closed 3.6% at $81.94.
Despite an increase in the business division that has generated profits over the past year, Disney’s announcement that it will treble expenditure on theme parks, resorts, and cruise lines to $60 billion over the next ten years sent shares lower.
Following the statement on Tuesday, Disney stock fell more than 3%, and it has down about 25% in the past year.
As visitors resumed to Disney theme parks in 2022 following Covid-19 closures and overseas parks experienced a similar recovery this year, particularly in Shanghai.
The strength of the parks comes as Disney’s streaming division continues to make losses and while box office results have been disappointing.
DISNEY TECHNICAL ANALYSIS DAILY CHART:
Disney is currently trading within a down channel.
Disney is positioned below all Moving Averages (SMA).
The Relative Strength Index (RSI) is in the neutral zone, while the Stochastic oscillator suggests a negative trend.
Immediate Resistance level: 85.97
Immediate support level: 81.49
HOW TO TRADE DISNEY
Disney is trading in a down channel, which is establishing a pattern of lower lows. Disney has currently breached its previous day’s low and is trading near a crucial support zone; if this zone is broken, additional declines are expected.
TRADE SUGGESTION- STOP SELL – 80.50, TAKE PROFIT AT- 77.03, SL AT- 83.10.