With stay-at-home mandates remaining in effect, companies like Netflix and Zoom may be doing more new business than ever. The services they offer are popular amongst their consumers, and within reason, they can essentially be in control of the prices they charge.
That just changed for Netflix.
Disney (NYSE: DIS), a competitor in the streaming industry, announced that effective immediately, they’ll be lowering their streaming services prices in an effort to attract new subscribers.
Imperial Capital stated that it sees this as a positive stock catalyst for Disney in an effort to “take share” from Netflix, and make a more popular name for itself in the streaming services industry.
Given Disney’s cruise ships are docked and their amusement parks are closed right now, I believe giving themselves an edge over Netflix in the competitive OTT industry will be a positive move for the company over time.
While Disney’s deliberate competitive pricing strategy is appealing enough for me to be interested in trading it, Disney’s chart is also about as easy to read as it gets from a technical analysis point of view.
You’ll notice a green line in the chart above. That’s Disney’s 20-day simple moving average line, a key technical indicator as we head into a new trading day.
Should Disney trade above its 20-day simple moving average line, that becomes a key support level and I’ll look to make a bullish trade.
Below its 20-day simple moving average line and Disney will be trading below overhead resistance. Therefore, I’d look to make a bearish trade.
And as usual, I’ll collect all available profits by the end of the day.
Before I bid you adieu, what if I told you that Wall Street knew about Gilead Sciences’ recent COVID-19 treatment announcement – before it happened? This new 5 minute video tells you everything you need to know.
Yours for TrackStar trading,
America’s #1 Premarket and Day Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.