NEW YORK (TheStreet) -- Darden Restaurants (DRI) - Get Report stock tracked its 200-day simple moving average higher since Oct. 21, when its 50-day simple moving average moved above its 200-day simple moving average in what technical analysts call a "golden cross." When this formation is confirmed, a stock is projected to move higher. That's been the case for the parent of Olive Garden.

Darden stock has been consolidating healthy gains since setting its all-time high of $75.60 on July 23. An earnings beat before the opening bell on Tuesday should be enough to re-energizing upward momentum.

Analysts expect Darden to earn 57 cents a share. Some on Wall Street say the company will report better-than-expected results on both earnings per share and on the revenue line.

Here's the daily chart for Darden.


Courtesy of MetaStock Xenith

Image placeholder title

Darden had a close of $69.46 on Friday, up 18.5% year to date and 8.1% below its all-time intraday high of $75.60, set on July 23. The stock has been above its 200-day simple moving average since Oct. 21, with that average now at $65.66. The stock has been below its 50-day simple moving average since Aug. 21.

The stock closed at $70.18 on Aug. 21. On "Black Monday," Aug. 24, the stock opened with a downside price gap of 4.5%, trading down 6.1% to a flash crash low of $65.93. This put the stock temporarily into correction territory, down 12.8% from the all-time high.

The rebound to $71.38 into Sept. 17 was a failed test of the 50-day simple moving average.

Here's the weekly chart for Darden.


Courtesy of MetaStock Xenith

Image placeholder title

The weekly chart for Darden is negative, with the stock below its key weekly moving average, shown in red at $70.16, with its weekly momentum at 47.34, down from 52.58 on Sept. 11.

Momentum scales from 00.00 to 100.00, with a reading below 20.00 oversold and a reading above 80.00 overbought. This study is shown in red along the bottom of the chart.

The 200-week simple moving average in green is at $53.22, representing the longer-term reversion to the mean. Darden has been above its 200-week since the week of Oct. 31, when the average was $49.29.

Investors looking to buy Darden should place a good till canceled limit order to purchase the stock if it drops to $64.92, which remains a key level on technical charts until the end of September.

Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $75.79, which is a key level on technical charts until the end of September.

This article is commentary by an independent contributor. At the time of publication, the author held no position in the stocks mentioned.