NEW YORK (TheStreet) -- Walt Disney (DIS) shares reached an all-time intraday high of $111.66 on April 27 and investors expect great things for the "Mouse House's" quarterly earnings scheduled for early Tuesday.
Analysts expect Disney to earn $1.11 a share. For Disney it's all about building brands at the box office, on TV and at theme parks. Some are calling for the stock to report $1.17 a share, which could result in another all-time intraday high.
Let's look at the daily and weekly charts for Disney and provide the key technical levels at which to buy on weakness and the key technical levels at which to sell on strength. 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's how to read a daily chart. There are two moving averages to follow; the 50-day simple moving average is in blue while the 200-day simple moving average is in green.
Here's how to read a weekly chart. This chart shows weekly price bars going back to the beginning of 2007 and thus includes the Crash of 2008, then the current bull market for stocks that began in March 2009. The red line tracks the ups and downs of the key weekly moving average. The green line is the 200-week simple moving average. The red line that oscillates along the bottom of the chart is the momentum reading on a scale of 00.00 to 100.00. A reading below 20.00 is oversold and a reading above 80.00 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 20.00.
A technically negative weekly chart occurs when a stock ends a week below its key weekly moving average with the momentum reading declining below 80.00.
Here's the daily chart for Disney.
Courtesy of MetaStock Xenith
Disney stock closed at $111.03 on Monday, up a solid 18% year to date, and is 23% above its 2015 low of $90.06 set on Feb. 2.
The stock has been above its 200-day simple moving average higher since testing this average of $82.72 back on Oct. 15. The stock ended last week well above its 50-day and 200-day simple moving averages of $106.71 and $95.06, respectively.
Here's the weekly chart for Disney.
Courtesy of MetaStock Xenith
The weekly chart for Disney is positive but extremely overbought with the stock above its key weekly moving average of $107.65 with its momentum reading of 90.49 up 89.48 a week ago. The 200-week simple moving average of $64.55 is the longer-term uptrend and the "reversion to the mean" last tested at $31.38 during the week of Oct. 7, 2011.
Investors looking to buy Disney should place a good till canceled limit order to purchase the stock if it drops to $96.11, which is a key level on technical charts until the end of June.
Investors looking to book profits should place a good till canceled limit order to sell the stock if it rises to $112.72, which is a key level on technical charts until the end of June.