Disney’s share price is described using Elliott Wave Theory across monthly and weekly charts. It places Disney near the end of a long Wave (II) correction and near the start of a new upward wave.
After a Wave (I) peak, the stock is outlined as a three-part abc decline. Wave a was a sharp fall, Wave b was a rebound that did not reach new highs, and Wave c was a longer, slower decline.
The Wave c area is linked to a Fibonacci support zone of about $40–$85. The weekly view describes the decline as a completed abc pattern, labelled Wave (II), with weaker downside momentum near the low.
The weekly chart also notes a possible new I-II structure, which can mark an early impulsive move. It says higher lows have formed and that price is holding above an invalidation level near $78.85.
If price stays above about $78.85, the same wave count remains valid, while a drop below would challenge it. Potential next steps include a move above resistance around $110–$120 and a longer-term retest of previous all-time highs.
The long corrective phase appears to be over, with the stock holding firm above the crucial $78.85 support level. We recall the deep skepticism of 2025, but recent price action suggests a structural shift is underway. The stabilization we’ve seen since late last year has built a solid foundation for a new advance.
This setup strongly suggests considering call options to capitalize on potential upside leverage. If a new impulsive wave is beginning, the move could be swift, making options a more capital-efficient way to participate. We’re looking at expirations in the late summer, like August or September 2026, to give the trade time to develop.
Fundamentally, things are looking better than they did a year ago. Disney+’s latest report showed a climb to 182 million global subscribers, beating analyst estimates and marking the second straight quarter of positive growth. This renewed momentum in the streaming segment directly addresses the core concerns we saw throughout 2025.
The immediate focus should be on the ~$120 resistance zone, which has capped previous rally attempts. A decisive break and hold above this level would serve as a strong confirmation signal for the next leg up. We would see this as a trigger to add to bullish positions.
On the other hand, risk management remains critical. We can use the $78.85 level as a clear line in the sand for any bullish strategies. A break below that price would invalidate this immediate upward-trending view and signal that the corrective phase is not yet complete.
For those looking to manage costs, a bull call spread could be an effective strategy. By buying a call option and selling a higher-strike call against it, traders can reduce the initial premium paid. This approach defines the maximum profit and loss, which is suitable for a move toward intermediate targets.
