Disney Reports Earnings Tuesday: Here's What the Charts Are Showing
Walt Disney Co. (DIS) is set to report its latest quarterly numbers after the close of trading on Tuesday. As a member of the Dow Jones Industrial Average and an iconic media brand the data trends and company decisions as well as any change in guidance should attract a lot of attention.
Let's check out the charts of this Action Alerts PLUS holding in the wake of the Super Bowl and the threat of the coronavirus impacting some of its businesses.
In the daily bar chart of DIS, below, we can see that prices are up from their March low but have recently been testing/breaking the rising 200-day moving average line. Prices have declined the past two months leading up to Tuesday's earnings release.
The slope of the 50-day moving average line is now negative and the On-Balance-Volume (OBV) line has moved lower with the price action, which tells us that sellers of DIS have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside at the beginning of December for a take profits sell signal but now the indicator is in an outright sell below the zero line.
In the weekly bar chart of DIS, below, we can see that prices rallied up from a 2017-2018 base but are now a tad weaker as they have slipped below the rising 40-week moving average line.
The weekly OBV line has turned lower and so has the MACD oscillator.
In this daily Point and Figure chart of DIS, below, we can see a potential downside price target in the $122 area.
Bottom-line strategy: I have no special knowledge of what DIS is going to report or announce but the charts and indicators currently show the possibility for further weakness. Stay nimble.
(Disney is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells DIS? Learn more now.)
Employees of TheStreet are restricted from trading individual securities.
Action Alerts PLUS, which Cramer manages as a charitable trust, is long DIS.