Comcast shares gain for a third session in a row on Tuesday, company abandons bid for Fox assets, Disney left in the lead

Comcast Corporation (CMCSA) was reported to have dropped its bid for the majority of assets of Twenty-First Century Fox Inc, thus, leaving Walt Disney Co in pole position for the deal estimated at more than $40 billion.

Comcast shares closed higher for a third consecutive trading session on Tuesday. It has also been the sharpest daily surge since December 4th. The stock went up 2.78% ($1.07) to $39.51, after touching an intraday high at $40.10, or a price level not seen since December 5th ($40.39).

In the week ended on December 10th the shares of the media giant lost 1.25% of their market value compared to a week ago, which marked the third drop out of five weeks.

However, due to the recent string of gains, the stock has extended its advance to 5.25% so far during the current month, following a 4.19% surge in November. The latter has been the best monthly performance since May.

For the entire past year, the shares of the NASDAQ-listed company rose 22.36%. The stock has gained another 14.46% so far in 2017.

According to a statement by Comcast earlier this week, its negotiations with Fox have come to an end.

“When a set of assets like Fox’s becomes available, it is our responsibility to evaluate if there is a strategic fit that could benefit our company and our shareholders”, the company said in a statement.

“That is what we tried to do and we are no longer engaged in the review of those assets. We never got the level of engagement needed to make a definitive offer.”

The assets in question include Fox’s FX and National Geographic cable channels, the Star network in India, Foxs movie studio as well as its stake in pay-TV provider Sky Plc.

According to Reuters, citing a source with knowledge of the situation, the Murdoch family controlling Fox favors a deal with Walt Disney Co, as it would rather receive payment in Disney stock than in Comcast stock. Additionally, a deal with Walt Disney is expected to be cleared more easily by antitrust regulators in the United States.

According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Comcast Corporation’s stock price, have a median target of $44.00, with a high estimate of $51.00 and a low estimate of $38.00. The median estimate is an 11.36% surge compared to the closing price of $39.51 on December 12th.

The same media also reported that 28 out of 34 surveyed investment analysts had rated Comcast Corporation’s stock as “Buy”, while 2 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Comcast stock are presented as follows:

R1 – $39.61
R2 – $39.71
R3 (Range Resistance – Sell) – $39.81
R4 (Long Breakout) – $40.12
R5 (Breakout Target 1) – $40.47
R6 (Breakout Target 2) – $40.62

S1 – $39.41
S2 – $39.31
S3 (Range Support – Buy) – $39.21
S4 (Short Breakout) – $38.91
S5 (Breakout Target 1) – $38.55
S6 (Breakout Target 2) – $38.40

By using the traditional method of calculation, the weekly levels of importance for Comcast Corporation (CMCSA) are presented as follows:

Central Pivot Point – $38.81
R1 – $39.87
R2 – $41.79
R3 – $42.85
R4 – $43.91

S1 – $36.89
S2 – $35.83
S3 – $33.91
S4 – $31.99