Disney shares fell more than 3% yesterday after the news of the proxy battle coming to an end

Taking a look at Disney as the proxy fight has now come to an end. Disney shareholders re-elected all 12 company nominees to the board of directors, Trian Fund Management and Blackwells were seeking five board seats but daily to secure. The company shares fell more than 3% in yesterday’s session after the news to now trade at around $118.59 a share in the pre-market session. We can see the results came in just as Disney approached its key resistance point, with the resistance between $122.04-$122.40. The stock’s share price did try to move higher but has so far been rejected, followed by a sell-off after the news. Nevertheless, the stock still has great support below with the first important level at $116.20 (along the ascending trendline). A break and close below this level may then see a further decline towards $110-$113. However, the longer-term outlook is still rather bullish and the proxy fight news may have simply led to some profit-taking as investors tend to take caution in similar situations. Towards the upside, if Disney manages to consolidate within this triangle then a continuation towards the upside may resume. The resistance now reads $120.44 then the area of $122.04-$122.40, and finally this year’s high of $123.73. A break and close above $123.73 would certainly encourage investors to target the area of $126-$127. Looking at the technical indicators, the RSI was already suggesting that the stock was pretty overbought on the daily chart. As a result, it is normal for some profit-taking to take place. The MACD is creating more of a concern in the near term as it seems like a possible bearish divergence could be forming, and it seems like it may turn negative. A bearish divergence is when the price of a market creates a higher high but its technical indicator forms a lower higher.