NEW YORK ( TheStreet) -- Seems like everything and everyone is engaged in merger fever with deals happening regularly for months now. The entertainment industry is no different. Just last week there were rumors of an impending buyout of Dish Network ( DUISH) by AT&T ( T - Get Report). Comcast ( CMCSA - Get Report) merged with NBC, and just this week, EchoStar ( SATS - Get Report) announced a deal to acquire Hughes Communications ( HUGH).

With all this activity and with a market that continues to vent bullish desires, Comcast is set to announce earnings Wednesday so it's probably worth a look technically to see how it might fare once the numbers are out. If you compare the company to its peers (Dish Network, Echostar, and DirecTV ( DTV - Get Report)) over the past year, it has been the second-best performer.

Can it continue to outperform? To try and answer that, let's take a look at the charts.

Here's the daily chart in which you can see several signs of strength over the past three months.

Each price surge has seen expanding volume and that's a good thing. If Comcast was to sell off on earnings Wednesday, these anchor bars supply nice support zones as annotated.

If you believe this company has more share price growth into the future, you can put a trading plan to work that buys into each of these support zones on the price retrace scaling in with larger and larger increments on the way down.

I am talking about the possibility of the company selling down off the earnings number, because on the weekly chart Comcast is suggesting that the current run may be about done.

The AB=CD patterns suggests $24 as the completion target. Comcast could easily retrace to the $20-$21 and have absolutely nothing wrong with it. In fact, it would be a gift at that price as that is where the breakout occurred.

Looking back at the daily chart, the $20 to $21 price area overlaps with the lower of the three annotated support zones. I have no idea if it can retrace back that far. If it does so, it will most likely be because the general market undergoes a significant correction. That is why scaling in at the anchored support zones makes a lot of sense from a trading perspective.

If Comcast was to trade higher on earnings, I would not chase the strength. Given that an AB=CD pattern has already completed on the weekly chart, the odds are quite high that it would come right back to the breakout area. How it came back would let you size up if you really want in at the higher prices or not. In my opinion, given all the chart evidence, not chasing the stock at these levels is the right trade.

Until next time, just keep trading the charts!

At the time of publication, Little has no position in the stocks mentioned, though positions can change at any time.

L.A. Little, author, professional trader and money manager, writes daily on, a free educational site for traders and investors. He has been featured in numerous publications and is the author of Trade Like The Little Guy.

His background includes degrees in philosophy, computer science, computer information systems and telecommunications. With a trading philosophy centered on capital protection first and the accumulation of consistent gains over time, L.A. espouses a simplistic technical approach to trading the markets that is a throwback to the days of past. With a focus on swing points and the qualification of trends, L.A. provides a breath of fresh air to an otherwise crowded room of derivative indicators with the emphasis on technical minutiae.