Thanks to Trump's great leadership and courageous efforts in breaking down the red tapes on various regulations for vaccine development, US is leading the world now with more and more effective vaccines approved and widely used to slow down the COVID pandemic!💪✌With the light coming up at the end of the tunnel, there's been a really hasty, mass movement into entertainment, travel, and leisure stocks that have been beaten down badly by the pandemic. Disney (DIS) is one of them. With the end of the pandemic looking closer than ever, Disney has announced its intention to begin a phased reopening of its theme parks in April. This has made investors really eager to buy DIS in anticipation of the upcoming speedy recovery of the company. There's no denying that Disney has had a great run. Since October, DIS has climbed an impressive 61%, even though its parks are still largely shuttered.
I have no doubt DIS will continue to benefit from the pandemic recovery and will be doing very well in reviving its businesses in the months ahead. But I'm not so sure about its near term future that will continue to shine from the current level. Technically it is a bit moving ahead of itself with a clear negative divergence on its momentum. I think DIS will be struggling for a few weeks at least. At minimum, a 10% correction is likely to me, targeting its 50 DMA. If a more severe correction ensues, a 20-30% downdraft is not unthinkable to bring it down towards its 200 DMA, a very normal return-to-the-mean movement.
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