Walt Disney Co (NYSE:DIS) will be the headline best performer in the Dow Jones Industrial Average over the next sixth months. I am looking to accumulate a large position based off technical and fundamental signals. This will be the staple of my account, with me trading around it with other positions.
1. The stock has fallen from its 2015 high of $122. This is a steep 25% discount. With a brand that will live forever and a relatively low P/E compared to the S&P 500 and its growth, Disney is great bargain.
2. On a technical stock chart basis the stock is primed for a large bounce. There was a bottoming tail formation last week. This is a bullish reversal signal. In addition, based off the weekly stock chart below, you can see multiple trend lines of support stretching back as far as 2013. An upside move in Walt Disney Co is expected to a first target of $101.00. This is a 10% move and should occur within the next few months.