After completing their acquisition of Fox's media assets, Disney (DIS  ) has underperformed. The stock sold off about 6% following the closing of the deal and technical traders note that it sliced right through the 200-day moving average. This all came without any real weakness in the overall market.

Now that the Disney deal is over you may think that investors are simply responding to the acquisition and adjusting their price targets, which could very well be true. In the short-term it has presented traders with an opportunity to the downside.

After the stock sold off through the 200-day moving average it found itself extended to the downside short-term. From there the "buy the dip" traders did just that and have caused the stock to rally throughout this week. The issue with the rally is that it's running out of steam. Technical traders will note the slowdown in buying activity right as it's approaching the 200-day moving average. Though the move could push a little higher, we'll focus on the 200-day as our resistance.

The trade of the week is to sell Disney short here at the $111 level using $114 as a stop loss area, which is just above the 200-day moving average. From there, we'll look for Disney to break below the previous low set on March 25 of $107.32. A realistic price target is the $106 price point, which one can use as a target to cover the short on Disney.