DIS update August 23

DIS: the charts continue to look weak and bleak for this entertainment conglomerate. The daily chart below shows a clear 5-waves down from it’s ATH to the February low, with a subdividing 3rd wave, and then a clear 3-waves advance to the May high. In addition, the high made in May was exactly a 61.8% retrace of the prior decline. Note the tightening bollinger bands: a big move is coming. A break below $95 will be the first bearish sign. A Break below $93 will all but confirm. Those are our levels we’ll watch to initiate shorts/puts.

DIS

The weekly chart shows the downside targets we are expecting: first target is the red c=a arrow to $87.50, which is about where (major) black a found support. Using the simple c=a extension for black c (of Primary A) we find it will target $72.5, right at big time support (annual S2 level):  black arrow. It is also right at the November 2014 low. By then we expect nice positive divergences to develop on the weekly MACD to set up Primary B

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