The Walt Disney Company (DIS) is expected to report their latest quarterly earnings after the close of trading Wednesday. Let's check out the charts and indicators.
In this daily bar chart of DIS, below, we can see that prices have been struggling since early March. DIS made a low in May that has not (yet) been broken but the trend is neutral at best now. DIS broke below the 200-day moving average line in September and now the underside of the average line has been acting as resistance.
The On-Balance-Volume (OBV) line declined into early August but has since been moving higher. A rising OBV line tells us that buyers of DIS have been more aggressive but that has not translated into an uptrend for the stock.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but has recently crossed upward for a cover shorts buy signal.
In this weekly Japanese candlestick chart of DIS, below, we see a less than convincing picture. Prices are below the 40-week moving average line. The weekly OBV line has been weak for much of this year. The MACD oscillator is down on the zero line and could turn lower or higher from here.
In this daily Point and Figure chart of DIS, below, we can see a potential downside price target in the $157 area.
Bottom line strategy: Technical analysts can spin indicators and patterns in either direction - we have reasons to be cautious on the stock ahead of earnings but it is interesting that DIS has not broken its May low. Strength above $190 is needed to turn the charts more positive.
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