Trading Analysis for Walt Disney Co (NYSE:DIS)

Stock Traders Daily suggests that investors in Walt Disney Co (NYSE:DIS) consider taking some off of the table.  According to our combined analysis for Disney the stock has recently tested a level of longer-term resistance and by rule we expect the stock to decline from current levels so long as that resistance level remains intact.

Although these numbers can change over time and we suggest that investors update the report to observe those changes regularly, resistance currently exists at $106.52, and if resistance remains intact we expect the stock to decline to $92.50.  This represents an approximate 13% decline.

Another way of interpreting this recommendation is to suggest that investors who are considering putting new money to work in shares of Disney at these levels should not do it, they should wait, and they should consider buying the stock when it is closer to longer term support levels.

In addition, and for more aggressive investors, shorting near resistance with an objective to cover when support levels are tested also looks to be attractive.  If resistance lines break higher short positions should be closed, but those certainly seem attractive especially if resistance lines hold.

On a fundamental basis, Disney looks like it is at the higher range of fair value currently, but looking ahead to calendar 2016, if analysts are correct about their estimates for calendar 2016 shares of Disney may present an attractive value going forward.

DIS Disney PEG Ratio

In summary, although Disney may not be immediately attractive to us given its proximity to longer-term resistance today, buying the stock near its support level seems reasonable given the forward looking fair value that exists at this time.  Monitor this combined analysis for updates to that as well.