
It is hard to predict where an issue will go the day after an earnings report. Technical analysis can give you some guidelines, but how investors will react to either good or bad reports is random. Yet the technical levels from that session can provide some guidelines to follow to help predict the future course of price action.
The above scenario applies to Walt Disney Co (NYSE:DIS), which had one of its best days in months, rallying $5.23 or 4.7% to close at $117.69 Thursday following its second-quarter report. The price action from Thursday and its implications for Friday's session make it the PreMarket Prep Stock of the Day.