Disney Attracts More Activist Attention, But Is Anything Moving the Needle?

The Walt Disney Company (DIS) is making news both from Steamboat Willie entering the public domain and from the activist hedge fund Blackwells Capital. Blackwells is nominating three directors, rivaling Trian Fund Management, which is seeking two seats on the board, according to reports.

Let's check out Disney's charts and indicators to see if anything is "moving the needle."

In the daily bar chart of DIS, below, I can see that the shares have been drifting lower since late November after a rally from late October. DIS is currently testing the rising 50-day moving average line and bottoming 200-day line.

Trading volume has been more active since March. The On-Balance-Volume (OBV) line has struggled the past 12 months. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line but it has declined for several weeks now. 

In the weekly Japanese candlestick chart of DIS, below, I can see that the shares have suffered a long and painful price decline over the past three years. DIS finally showed some stability in the $80 area in September and October. The stock is holding around the declining 40-week moving average line.

The weekly OBV line shows weakness the past three years. The MACD oscillator has been improving for months but has only tested the underside of the zero line. 

In this daily Point and Figure chart of DIS, below, I can see an upside price target in the $114 area. 

In this weekly Point and Figure chart of DIS, below, I can see a price target in the $128 area. 

Bottom-line strategy: Battles for board seats can be a distraction but activist investors believe they bring strategies that can improve a company's operation (and stock price). We'll see.

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