Original 10/15 post follow. See below for 10/22 update.
Dish Network has been a few battles recently with cable television channel providers over providing certain shows. One of those channels, AMC, decided not to air the season 3 premiere of The Walking Dead, an immensely popular show (and huge highlight of New York Comic Con’s events this past weekend) over the Dish Network due to their ongoing legal fights. Variety notes the season premiere had around 15 million viewers for the night without Dish, which would have added another potential 14 million viewers. The fact that Dish is missing out on the show, potential ad revenues and the potential loss of subscribers should be worrisome. Looking at the technical picture though, Dish made a new 1yr closing high today. We can take the intraday high back in March of note, but that day closed much lower than the high – no good.
Dish broke through its late March high around $34 (which was when the season 2 finale of Walking Dead was), also making a new recent high in RSI, always a positive sign for a new 52 week high. Some may have judged this move a few weeks back when the stock was sandwiched between the 50 and 200 day moving averages, which a break in either direction can lead to a downward breakout or just a small pullback and then resume of the upward trend, which is what we have now. One thing to note on the chart is the lack of a new high in volume, but towards volume is much higher than previous months averages.
Apparently DISH has no fear of the walking dead and the market seems to think so now as well.
On a quick note on AMC, the solid season premiere has lead to a large bullish engulfing pattern. This should hopefully put a stop to the recent downturn, but it’s only one candle so don’t act on it just yet. AMCs been forming an ascending triangle, so a break above our resistance line or below the rising support line should give some idea of a general direction.
Both companies have reached an agreement regarding their programming. Both companies are making new highs. Check out DISH:
Of note is the higher volume, along with a new high in our momentum indicator. I threw in an Accumulation/Distribution line just to show how powerful its been this year – constant uprise. The stock has also gapped up today (hard to see on the yearly), so let’s see how the rest of the day goes, but it is definitely a powerful positive sign.
AMC has also had a big breakthrough the ascending triangle it was forming – also with a strong gap upward. RSI (broke through previous resistance) and MACD also looking strong with large volume, which is what we’d want to see for such a short, strong move up. Since we last mentioned our bullish engulfing candle on 10/15, AMC has not had a down day despite the overall market taking some hits last week.
Maybe zombies are the anti-bear?