Down 8% from its 24' highs, earnings looming

Taking a look at Walt Disney ahead of its earnings tomorrow. The media and entertainment conglomerate is expected to post earnings of $1.10 a share and is expected to report a 1.3% increase in revenue to $22.108 billion from $21.82 billion a year ago. Currently, its stock is trading at around $114.42 in the pre-market trade. Looking at the weekly chart, we can see that the stock’s share price has declined as low as 11.5% and now it's down 8% from meeting the resistance at $122.39. It seems like it may have found some support at $110.13 going into the earnings, a break below this level would face trendline support at $106.20. The trendline support is almost in line with the February lows, which will act as a major support area here. We can see that last week’s candlestick closed as a green hammer, which tends to be a bullish indication suggesting an increase in buying volume. This creates a potential opportunity for a pushback up to the resistance of $123.70, it would mean that a 9% rise after the earnings from current levels would be needed to re-test that resistance. However, investors and traders should take a cautious approach as the technical indicators are a little mixed right now. The weekly MACD is now practically touching its signal line, offering no hints on the direction it could move in. Whereas the RSI has flattened, but it's still positive perhaps adjusting ahead of the earnings.