Disney Stock Forms Golden Cross: Time For 'Magical' Rally?

It seems like Disney’s fairy dust is starting to sparkle again — at least on the technical charts.

Shares of Walt Disney Co DIS recently flashed a Golden Cross, a classic bullish signal where the stock’s short-term moving averages cross above its long-term ones.

Chart created using Benzinga Pro

With a moderately bullish trend and some selling pressure, is the magic about to fade? Or, is Disney poised for a comeback?

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A Golden Signal For Disney Stock Investors?

Let's break it down. Disney stock trade at $114.61, a modest bump from the 50-day simple moving average of $102.63 and the 200-day SMA of $102.18 – both creating a bullish signal. But, there’s a twist—its eight-day moving average sits at $116.69, signaling potential selling pressure. Disney stock is caught in a tug-of-war between its bullish indicators and a possible pullback.

On the brighter side, Disney stock's 20-day SMA of $113.22 is reinforcing the bullish signal. This is further supported by the bullish 50-day and 200-day averages. The Moving Average Convergence Divergence (MACD) indicator of 4.32 is also flashing bullish. Its Relative Strength Index (RSI) at 64.69 suggests Disney is inching toward overbought territory.

Sounds like a magical ride—if you're into short-term swings.

Disney’s Premium Strategy, Future Growth

Meanwhile, Disney has been up to more than just chart gymnastics. The company is set to boost its bottom line by tapping into the "premium" segment of its theme park audience. Higher prices, surge pricing, and new “premium” park offerings like park-hoppers are in the works.

CFO Hugh Johnston recently confirmed the price hikes and teased that park experiences, cruises, and consumer products should grow by 6% to 8% next year.

Disney's cruise business is getting some love too. The company is launching its sixth ship, Disney Treasure, at the end of December. Seven more ships are slated by 2031. Given its high customer ratings, and intellectual property-laden offerings, Disney is betting that cruises will become a significant contributor to revenue.

Challenges Ahead: Universal, Selling Pressure

But here's the hitch: Johnston also warned about the potential impact of Universal's new theme park in Orlando. This, could put a dent in Disney’s plans.

Should you buckle up for a bullish Disney rally or is it time to take a cruise out of the stock? With the Golden Cross, some buy signals, and a few headwinds (including Universal's looming Orlando presence), it's clear Disney's stock is currently riding a rollercoaster of its own.

Read Next:

• Disney Doubles Down On Cruises With Seven New Ships By 2031, Targets Asian Market Expansion: ‘Best Time To Invest In This Business’

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