It’s been almost two years since we last wrote about Disney in late-August, 2023. The stock was trading below $85 per share, down nearly 60% from its 2021 all-time high of over $200. And just when many investors were ready to throw in the towel, we thought that an “Elliott Wave rebound” was about to begin. The reason for our optimism was the daily chart below.
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It revealed that the decline from $203 was a textbook five-wave impulse pattern, marked (1)-(2)-(3)-(4)-(5) in wave A. Two lower degrees of the trend were visible within the structure of wave (3), while both waves 5 of (3) and (5) were ending diagonals. According to the theory, a three-wave correction was supposed to follow. So instead of joining the bears in the mid-$80s per share, we thought that a notable recovery can be expected, before the downtrend resumes in wave C. The updated chart below shows how the situation developed.
The bulls took the wheel almost right away. Wave B shaped as a simple (a)-(b)-(c) zigzag with a very deep (b)-wave. On the last day of June, 2025, Disney stock climbed to $124.69, up 48% since Elliott Wave analysis gave that bullish hint two years ago.
On the other hand, it is down ~10% since touching the upper line of the corrective channel enveloping wave B. If this count is correct, that’s because wave C has already begun, putting downside targets below the bottom of wave A on the table. So we definitely don’t think that buying the Disney stock dip is a good idea.
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