Disney stock comes into Thursday's earnings at quite a crossroads. Shares are relatively flat for 2025, and CEO Bob Iger's legacy in the eyes of shareholders may be at stake as he begins his final year at the helm. When it was announced in November 2022 that Iger was returning to replace Bob Chapek, the stock was trading at $91.45. Shares rallied on the news of his return, but have been trending in a rather wide range between $80 and $120 since that time. While the stock's price has stabilized, it hasn't made a significant run higher… yet. Earnings – Pre-market, Thursday, Nov. 13 Investors will be eager to hear updates on the YouTube TV blackout, news on cost-cutting and revenue growth from its direct-to-consumer business, the health of the consumer when it comes to park spend and of course any succession updates in the new CEO search. Traders will be watching a few key levels of their own, hoping that a breakout and new uptrend is about to begin. When we look at the stock on multiple time frames, we clearly see an opportunity on the horizon. The set-up First, the near-term. Let's examine the one-year daily chart. Shares are in a near-term downtrend going back to its June peak. Price has been consolidating in a narrowing range between its 50 and 200-day moving averages with clear support around $110. Shares are coiling and it appears something is about to give. Momentum indicators are helping the bull case as its RSI is showing a bullish divergence and the MACD is giving a slight buy signal. Price is pushing that upper band of the trend and seems poised to break above it. The longer-term view paints an even rosier picture. Let's look at a five-year weekly chart which shows the change in trend. Shares have broken its long-term downtrend going back its 2021 peak. Price is now trending above both its 50 and 200-week moving averages. The averages have formed a golden-cross (green circle), which tends to be a lagging indicator on a short-term basis but is more significant on a longer-term basis. The last time Disney formed a golden-cross on a weekly basis was June 2010 which was the beginning of a new long-term uptrend. The trade Upside potential seems to far outweigh the downside risk — especially for those looking for a turnaround story and have an extended holding period. First that downside risk — if shares were to break below the $102-$105 area then the stock goes back into the penalty box and will need time to regroup. Wait for a better entry. However, the upside potential outweighs that risk going into earnings. Short-term traders want to see a gap above the 50-day moving average. If that is achieved expect a run back to that $120 level as we head into year-end. Over the longer term, any push higher could prove to be the next leg of a future, uptrend which will be confirmed if shares can get back and stay above $120. With a year remaining at the helm, this would be a great step to secure Iger's legacy as the man that turned things around and rewarded shareholders along the way. — Jay Woods with Chase Games DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
