At a time when the stock market has – despite some staggering corrections – been hitting new all-time highs (ATH) after new all-time highs, Disney (NYSE: DIS) has not been a particularly strong performer and, by extension, a particularly good investment.
Indeed, in the last 12 months, DIS stock managed to climb only 5.06%, with much of the gains, by the time of publication on July 26, finding themselves at risk of getting wiped in the most recent downturn.
Following a losing week that saw Disney shares dip 5%, which came within an even worse month, which, by press time, featured a 12% decline, DIS stock price stands at $89.68.
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Disney stock is set for a deeper decline
Additionally, things may soon get worse for the House of Mouse as technical analysis (TA) of the company’s recent stock market activity reveals it has formed a death cross – its first since April 2023.
The death cross is a chart pattern that forms when a short-term moving average (MA) crosses below a long-term moving average and generally signals that a major plunge is ahead.
The last time DIS stock formed this pattern, it dropped to decade lows, though such historical precedent does little to offer clarity to investors in the summer of 2024, given that Disney shares are, indeed, hardly above the aforementioned lows.
Disney’s nearest support levels – which stand just below $89 – however offer some immediate insight into the stock’s likely short-term performance as they hold the chance for a rebound should they end their plunge above them. A drop below support, on the other hand, would likely signal a strong confirmation of what the death cross has already signaled.
Analysts remain bullish on Disney stock despite weak performance
Wall Street experts, on the other hand, remain rather bullish about DIS for the next 12 month. Indeed, despite Disney gaining substantially less that the benchmark indices in the last 12 months, and despite it boasting a mere 8 green days out of the last 30, the consensus marks the company’s stock as a ‘buy.’
In fact, among the 33 experts represented on the stock analysis platform TradingView, only 1 recommends selling DIS, while as many as 24 rate it as either a ‘strong buy’ or a ‘buy.’
The overall 12-month price target also demonstrates analysts’ confidence that Disney will offer a substantially better stock market performance in the coming 52 weeks than it did in the previous, as the average forecast places the shares at $124.37 – a 39.41% upside.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
