The Walt Disney Company (DIS) bought Lucas Films and the rights to the Star Wars franchise on October 30, 2012 a little over 3 years ago. Disney has been on a tear ever since.
Take a look at the weekly chart below. The vertical line marks the week that Disney acquired Lucas Films. The stock closed that week at $34.76. The high Weekly close occurred for the week ending Nov. 20 of this year with a close of $120.07.
Disney up 245%
This was just $.07 high than the weekly close of July 31, 2015. It does create a potential double top picture on the weekly chart. So with a 245% return since the acquisition there is a very good chance that high expectations for the Star Wars release on December 18 are already built-in.
Now take a look at the daily chart below. You can see that the huge gap down in August was recently “filled” with the rally into November. There is strong negative divergence on all 3 of my indicators. The chart below shows the RSI(10). There is a very good chance that this stock is now rolling over.
I love Star Wars. I was there on opening night May 25, 1977 for the original Star Wars. I have seen all the films many times. I have seen the trailers for “The Force Awakens” several times. And I will see this new movie also. But stock prices are all about expectations and results. I think the “Force” is already built into Disney.