The big news landed yesterday! Walt Disney announced the sealing of a $52.4bn takeover deal with 21st Century Fox, thus acquiring a very large part of the mass media corporation.
Disney is to acquire Fox's movie and television studio, FX and National Geographic networks as well as international assets – including Star India's television channels – and a 39% stake in Sky, European satellite broadcaster. In addition, Disney also gets Fox's stake in Hulu, US video streaming provider.
21st Century Fox will keep Fox News, the Fox broadcast network, and Fox Sports 1.
Why exactly is this important?
First, the deal ends more than 50 years of media expansion by Fox owner and magnate, Rupert Murdoch. Second, there will clearly be a direct impact on Disney (#DIS) CFD price.
Let's have a closer look at the DIS share CFD price chart below...
DIS Share CFD Price Overview
Source: DIS H4 chart, Admiral Markets platform, Sep-Dec 2017
The price is currently above the weekly H3 (W H3), which suggests an uptrend. The price is also making higher highs and higher lows, possibly targeting the monthly H5 (M H5) 113.85. If the price pull-backs to the POC zone 106.50-150.70 (ATR low, W H3, order block), we could see new buyers joining towards 108.87, 112.75, and 113.85. However, if the price drops below W L3 101.76, the DIS could start a move down towards 99.39 and 95.51
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See you in a week's time!
Olga & Nenad