The market takes breath after the long rally. What opportunities do traders have today?
Disney stock: follow this dark horse!
Time to make your inner child extremely happy as Disney announced its plans on reopening the Disney World and Disneyland theme parks on July 11 and July 17. Of course, for us it means one thing – Disney’s stock is about to get stronger.
Some analysts wonder why Disney has been waiting for so long for its parks to open. According to the most pessimistic forecasts, Disney has lost $1 billion in earnings since the closure in the middle of March. At the same time, others suggest that the company chose a perfect timing for lifting the restrictions. Their reasons are quite strong.
Firstly, let’s not forget that Disney is not only about parks. The corporation has been developing its streaming platform called Disney+. They also have ABC, ESPN, and Disney Channel among other media sources, and offer a wide variety of consumer products. Therefore, the company manages to keep the power on despite the coronavirus threats.
The other thing we should keep in mind is that coronavirus pulled the attendance of rivals’ parks in Central Florida at the beginning of June. Last Saturday was the first busy day for Universal Orlando. People were waiting in long lines to enter the park. So, we may expect that the number of tourists will be even higher in the region by the time Disney World opens. Thus, that will be a perfect time for Disney to enter the game.
Also, let’s not forget that coronavirus cases are rising now in Florida. So, if there is any chance that the government will set up a quarantine once again, Disney’s delay will help the company to deal with the lockdown.
For now, the price of Disney’s stock is trying to stick above the 100-day SMA. The stock is trading close to the lower border of the ascending channel, so the rebound higher is possible. The first resistance lies at $120. After the breakout of this level, the stock may rise towards 200-day SMA at $127.3. On the downside, the first level for bears is placed at $112.2. To pull the stock further, sellers need to break this level. The further fall will be limited by the $109 level.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.