Walt Disney Co. (DIS) is scheduled to report their latest earnings numbers after the close of trading Tuesday. Will it be a rerun or first-run experience? Let's check out the charts and indicators.
In the daily bar chart we can see a low in June/July and then a successful retest in October. The declining 50-day moving average line is providing some resistance. The 200-day moving average line is still bearish and intersects around $115.
The On-Balance-Volume (OBV) line has moved sideways since July and that is slightly positive but a rising OBV line would be what we really want to see. The Moving Average Convergence Divergence (MACD) oscillator has been making higher lows since May and now is trying to cross above the zero line for an outright buy signal.
In the weekly Japanese candlestick chart of DIS, below, we can see an improving picture but Mickey is still not out of the woods. Prices are still below the declining 40-week moving average line but we can see a number of lower shadows in June, July and October.
The weekly OBV line has been holding steady in recent months but that is not the same as improving. The MACD oscillator has been improving but is still below the zero line.
In this daily Point and Figure chart of DIS, below, we can see a potential upside price target in the $129 area but a trade at $109.77 is needed to refresh the uptrend.
In this weekly Point and Figure chart of DIS, below, we can see a price target in the $144 area.
Bottom-line strategy: I have no special knowledge of what DIS will be telling shareholders and analysts this evening but the charts are not bad. They are also not super bullish. Let's call them mixed for now. I want to see a more developed base pattern on DIS before going long.
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