NEW YORK (TheStreet) -- Disney (DIS) - Get Report ended Monday up a parabolic 28.6% for the year, by far the best-performing stock in the Dow Jones Industrial Average, which is down 1.3% year to date, and this raises the bar for earnings slated for release late Tuesday.
Analysts expect the diversified entertainment company to earn $1.39 a share for the fiscal third quarter.
Jim Cramer told investors to hold positions of the stock through the earnings report, citing the coming release of a new "Star Wars" and the advent of Shanghai Disneyland.
Morningstar likes Pixar's "Inside Out" film, revenue from ABC and ESPN TV channels, and it expects stability in the theme parks.
Meanwhile, analysts from Stifel expect upward momentum to continue and have raised their price target to $130 a share from $120.
Must-see daily and weekly and key trading levels will help investors manage their investment decisions for shares of Disney both before and after earnings are reported.
Here is the daily chart for Disney:
Courtesy of MetaStock Xenith
Disney closed at $121.11 on Monday, up 28.6% year to date, with the stock setting an all-time intraday high of $121.73, well above its 50-day and 200-day simple moving averages of $114.51 and $103.04, respectively.
This short-term momentum run-up began from the 200-day SMA on Oct. 17 when this average was $82.78. The price gap to the upside on Feb. 4 followed an earnings beat the evening before.
This earnings beat was the sixth in a string of seven, which has set the earnings bar high for Tuesday's report after the closing bell.
Note that the earnings beat reported on May 5 was followed by a modest decline from the open of $113.27 that day to a low of $107.65 on June 9, down 5%. The close above the 50-day SMA the following day resumed the upward momentum.
Here is the weekly chart for Disney:
Courtesy of MetaStock Xenith
The weekly chart for Disney will remain positive but overbought with a close this Friday above its key weekly moving average of $116.98. The weekly momentum reading is projected to be 92.39 this week, up from 91.58 on July 31, with both readings well above the overbought threshold of 80.
The stock has been above its 200-week SMA since the week of Oct. 7, 2011, when the average was $32.3.
Investors looking to buy Disney should place a good 'til canceled limit order to buy the stock if it drops to $119.76 and $112.86, which are key levels on technical charts until the end of the year and the end of next month, respectively.
Investors looking to reduce holdings should place a good 'til canceled limit to sell the stock if it rises to $122.46, which is a key level on technical charts until the end of this month.
Investors not familiar with technical analysis should begin with the notion that a price chart for a stock shows a road map of past price performance, which provides guidance for predicting future share price direction.
Here is how to read a daily chart: There are two moving averages to follow; the 50-day SMA is in blue, while the 200-day SMA is in green.
Here is how to read a weekly chart: The red line tracks the ups and downs of the key weekly moving average. The green line is the 200-week SMA.
The red line that oscillates along the bottom of the chart is the momentum reading on a scale of 0 to 100. A reading below 20 is oversold, and a reading above 80 is overbought.
A technically positive weekly chart occurs when a stock ends a week above its key weekly moving average with the momentum reading rising above 20.
A technically negative weekly chart occurs when a stock ends a week below its key weekly moving average with the momentum reading declining below 80.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.