DIS: Woody crossed $1 Billion. Disney Is building a reversal

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DIS: Woody crossed $1 Billion. Disney Is building a reversalWalt Disney CompanyBATS:DISTotoshkaTradesDIS Walt Disney Company trades on the NYSE and operates three core businesses: streaming (Disney+ and Hulu), parks and cruises, and film and television. After several years of restructuring, the company has returned to confident earnings growth under new CEO Josh D'Amaro, who took over from Bob Iger in March 2026. Technicals The weekly chart has formed a large-scale reversal pattern known as a rounding bottom, developing gradually over several years after the cycle low was set at $78.73. Along the way, the long-term weekly trendline that had capped the stock from its historical highs was broken to the upside. Following that breakout, price completed a clean technical retest, confirmed buyer strength, and moved decisively higher. An additional confirmation came from a breakout above the 200-week moving average MA200, which has since transformed into a reliable support zone. Price closed yesterday at $110.61, consolidating in the $111–$113 range. Volume and the oscillator confirm readiness for continuation. The primary intermediate target is the neckline of the pattern at $126.43. Two scenarios are in play. The first is a direct impulse: price moves from current levels straight toward $126.43, and upon a confident breakout, retests the neckline from above and continues toward the Fibonacci targets - first target $141.38, global target $165.77. The second is a local correction: before attacking $126.43, price pulls back to the MA200 zone at $102.50–$104.50, consolidates, and then launches a second powerful wave toward the same targets. The Fundamental (Cherry on Top) The technical picture is backed by a real business. On August 5, Disney reported fiscal Q3 results. Adjusted EPS came in at $2.06 versus the $1.86 consensus, a beat of 10.8%. Total segment operating income rose 21% to $5.6 billion. Free cash flow jumped 63% to $3.1 billion. Streaming (Disney+ and Hulu) has finally stopped burning cash. Operating income doubled to $712 million, with margin reaching 13% and continuing to expand. Parks and cruises set a record: revenue of $10 billion (+10%) and operating income up 20% to $3 billion, even against a backdrop of macroeconomic uncertainty. Toy Story 5 crossed $1.02 billion at the global box office, becoming the highest-grossing film of 2026 and the biggest release in franchise history in North America. The theatrical success triggered a wave of merchandise sales and pushed streaming viewership to record levels. Management raised the share buyback program from $8 billion to $9 billion for the current fiscal year and reaffirmed double-digit adjusted EPS growth for both fiscal 2026 and 2027. Large institutional funds now have a compelling reason to reprice the stock and push it toward the upper targets. This publication is for analytical purposes only and does not constitute individual investment advice. Share your thoughts in the comments and support the idea with a like if the analysis was useful.