Disney has been one of the best performing large cap stocks since the start of 2012. Though DIS is the epitome of a staid, old school blue chip company, the stock has traded more like a high flying momentum name. In fact, the stock recently tested its 200 day moving average for only the second time in the past 18 months:
The 50 day ma is declining for only the second time (along with the late 2012 time period). The rising 200 day moving average is a key level to watch going forward, now rapidly approaching $60.
Once again, this is one of those situations where a range trade could be appealing, as the overhead supply from this summer’s price action could cap the stock’s near-term gains, while the long-term uptrend remains in tact and attracts buyers on any further dip.