The Walt Disney Co. (DIS) released its fiscal first-quarter results after the close Tuesday and they beat analysts' estimates on the top and bottom lines. We looked at the DIS charts on Monday and observed at that time, "While DIS does not show a lot of aggressive buying in the past month leading up to tomorrow's earnings release, the weekly chart has a bullish bias. I have no special knowledge of Disney's numbers, but the chart suggests price strength in the weeks ahead." DIS is up a bit before Wednesday's opening bell, so let's check the charts again for Disney, which is Real Money's Stock of the Day and is a holding of Jim Cramer's Action Alerts PLUS charitable trust.
In this daily bar chart of DIS, below, we can see that DIS has traded above the basing 50-day moving average line. The slower-to-react 200-day moving average line is still rising and the test of the line in late January looks like a buying opportunity. The daily On-Balance-Volume (OBV) line shows some firming from late December, which suggests that buyers of DIS have become slightly more aggressive. The daily Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line, which is bullish.
In this weekly bar chart of DIS, below, we can see that prices are holding above the rising 40-week moving average line. The weekly OBV line shows a choppy rising trend from late April. The weekly MACD oscillator has narrowed and is close to crossing to the upside for an outright go-long signal.
In this Point and Figure chart of DIS, below, we can see that a trade at $114.23 should turn the chart more positive.
Bottom line strategy: Fundamentally oriented sell-side analysts will be going over the DIS numbers and writing up reports and emailing them to clients. I am going to stick to the price action and the charts for my guidance.