Disney (DIS) reported right after the bell, the beat on EPS and missed on revenues. Interestingly (coincidentally?) the miss that has DIS trading down 1.81% in after hours, erasing all of today's gains, just so happen to occur on the very same day that DIS broke out to end the primary downtrend, an enticing breakout to buy.
If you are familiar with the dogma of technical analysis, a breakout is something that is coveted and to be bought, a breakout that ends a primary downtrend even more so.
Here's DIS today breaking the Primary Downtrend with a breakout above the July closing highs on about a 1/3 increase in average 200 day volume.
As you can see on this chart of the last 2.5 days, volume surged on the breakout, leaving buyers at a loss right now. Coincidence or just a well planned head fake move?
The daily 3C chart shows DIS moving up in confirmation of the trend in 2010, then distribution takes place during a topping formation in the first half of 2011, DIS falls 34% from the top's highs, quite a fall for such a large cap that is not typically associated with beta.. From June 2011 through the October lows we see a strong 3C positive divergence and DIS gains 41% through today's close, but on a negative divergence at today's breakout.
On an intermediate 15 min timeframe DIS sees a negative divergence sending it lower in to an accumulation zone for the move through resistance and an important breakout, yet there's no 3C support as DIS breaks out.
A 10 min chart shows a little more detail of a negative 3C leading divergence in to the breakout
A 5 min chart shows a steep leading negative drop today, just around the time the breakout started.
I wouldn't think a company as big as DIS would have a leak in earnings and of course we can't ever know for sure, but a breakout with buyers stepping in that would have ended a primary downtrend with all the 3C charts above in agreement, something is definitely a little fishy.
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