The Walt Disney Company, commonly known as Disney DIS, is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios Complex in Burbank, California. Disney was founded as Disney Brothers Studio on October 16, 1923 by brothers Walt and Roy O. Disney.
DIS daily chart December 2021
A year ago, we were completing a new cycle double correction that started at the March 2020 low. On the chart we can see that it is building a connector ((X)) and then continuing to drop. However, since the DIS dropped significantly after the connector was completed, it would be better to consider the correction currently being implemented as the Great Super Cycle correction. This means that the market has gone through a full cycle since DIS existed as a company.
DIS Quarterly Chart December 2022
If you look at the chart, you’ll see Disney’s stock price for almost the entire period. The structure formed is clearly an impulse. Wave (I) ended at 42.71. Then we can see a flat correction as a wave (II) ending at 13.46 in the .com recession. From there, the DIS has come a long way to complete wave (III) at 153.41, and we can see five waves pointing upwards in red. Wave (IV) reached early in the covid19 pandemic and ended at 79.07 in March 2020. The final rally to complete Wave (V) of ((I)) of the Great Super Cycle finished at 203.02.
The drop from the peak is quite deep. It has already broken the 50% Fibonacci retracement by taking a retracement from 0 to 203.02. The wave structure ((II)) still looks incomplete and needs more bearish moves. (If you want to learn more about Elliott Wave theory, follow these links: Elliott Wave Education and Elliott Wave Theory).
DIS Weekly Chart December 2022
On the weekly chart, we can see the overall structure of the wave ((II)) modification. The structure of the blue wave (w) takes the form of a 3-7-3 double correction. Connector (x) built flat compensation. This was the connector ((X)) I was looking for before continuing my research a year ago. I’m currently trying to complete a 5-3-5 zigzag fix to complete wave (y) and wave ((II)). From the high of the b-wave that ended at 126.55, we need to complete a bearish impulse to complete the overall correction. The continuation of the bearishness should move to the blue box in the 59.05 – 43.07 area and the rally should continue.
Disney (DIS) presents a great long-term buying opportunity. The first purchase attempt is in the 59.05 – 43.07 zone. If the market breaks out of this area, the next level to watch will be 35.85. Only a break above 126.55 will give us a good warning that the correction is over and we can continue the move up. However, the only way to be sure the wave ((II)) is over is to break the 203.02 high.
