NEW YORK (TheStreet) -- Express (EXPR) - Get Report, the retailer of apparel and accessories for women and men in their twenties, reports quarterly results before the opening bell on Wednesday. Its daily and weekly charts show the stock is poised for a positive reaction to this report.
Analysts expect the company to report earnings of 46 cents a share for the quarter that ended in January. Express does not have a track record of beating earnings estimates, but some analysts expect positive guidance on product offerings for the spring and summer.
Express went public on May 13, 2010, traded sideways down to $12.89 on June 8, 2010, then up to $19.05 on July 26, 2010. Once it began to gain real popularity with investors, shares of Express surged 104% from their June 2010 low their all-time intraday high of $26.27 set on March 14, 2012. From that high, the stock plunged 60% to its all-time intraday low of $10.47 set on November 13, 2012.
Another momentum run-up from this low was 139% to a high of $25.05 set on Dec. 3, 2013. Illustrate the stocks continued volatility, it plunged 53% from that high to as low as $11.80 on May 30, 2014.
Daily and weekly charts show this volatility, but they also show that shares of Express have upside potential if the stock can break out above its 200-day simple moving average and shift to technically positive at the end of the week.
Let's take a look at the performance measures for Express, key trading levels and analysis of daily and weekly charts.
Express ($14.09 at Monday's close, currently $14.82) declined 21% in 2014 and is up close to 1% so far in 2015. The stock is down 27% since its Jan. 6, 2014 high of $19.35.
Investors looking to buy Express after earnings should place a good till canceled limit order to purchase the stock if it drops to $12.71, which is a key level on technical charts until the end of March.
Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $16.99, which is a key level on technical charts until the end of June.
Let's take a look at the daily chart for Express.
Courtesy of MetaStock Xenith
The daily chart for Express shows the stock broke below its 200-day simple moving average (green line) on Dec. 5, 2013 when the average was $20.98. The stock declined to a multiyear intraday low of $11.80 on May 30, 2014, then rebounded to its 200-day simple moving average on August 27 when the average was $16.95.
The stock could not sustain a rally above the 200-day SMA and traded as low as $12.59 on Jan. 20. The stock has rebounded to its 200-day simple moving average at $14.84 in Tuesday's trading setting up a potential breakout on a positive reaction to earnings pre-market on Wednesday. The 50-day simple moving average (blue line) is a technical support at $13.93.
Let's take a look at the weekly chart for Express.
Courtesy of MetaStock Xenith
The weekly chart for Express will shift to positive if this week's close is above its key weekly moving average (red line) at $14. A positive reaction to earnings will be a catalyst for upside potential to its 200-week simple moving average (green line) at $18.33. The momentum study at the bottom of the chart in red is poised to rise from its current reading of $62.52 and should rise towards the overbought threshold of $80.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.