DIS, Disney

dis

Disney is not much different from a whole host of stocks. It starts down in an A-B-C in which the C is the 2008/9 market crash. The next move up is a pretty standard irregular B wave, itself comprised of an A-B-C The entire structure looks to be an expanded flat (but could become a huge triangle!). The large C wave has begun and should develop into a 5-wave down move. It may do so at approximately the same tangent of the A wave, first part slow and then faster. If that were to happen a pretty steep rally should be around the corner. The stock has now lost 37%, by my rough calculations, from the irregular top of B 3 or 5 months ago. That is close to the Fibo 38% and it also coincides with the low of the triangle (at least the short version).In terms of the rally post March the stock is down roughly 50%

    There is an outside chance that all of this will turn out to become a fourth wave of some high degree. A flat would fit this nicely but so would a triangle (in blue). On the outside chance that it does become a triangle, typically the legs (5 of them) relate to each other by 61.8% (this is akin to the dampening effect by friction on a swinging pendulum ). That targets approximately $25 for the C leg. I do not like projecting out that far in the future, too many things can change, but it does give a roadmap for the next best stopping point $25.(that is also where 62% of the rally is erased. The early clue will be how wave C develops , if it turns out as a 3 legged affair the triangle will be will come to the front, for the moment $14 is the target.