British fashion retailer, Boohoo, is expected to report earnings tomorrow of £0.95 on £530M. Its competitor ASOS reported losses last week as shoppers cut back.

Glancing over Boohoo’s stock as the British fashion retailer is expected to report its earnings tomorrow. Currently trading at around 37.94p a share, we can see that on the daily timeframe the price is approaching another support level. This support level is located at 37.41p (yellow oval), a break below it could see the price head lower towards the next major support sitting at 32.66p (white trendline). If we see some price consolidation dependent on the outcome of the earnings report, then resistance could be tested at 41.46p. Only a break above 41.46p could see a move higher, with the target then around 43p-45p. The technical indicators currently suggest a negative outlook, with MACD strongly negative and RSI reading 26. However, RSI suggests that the stock is traded in ‘oversold’ conditions. Investors should bare in mind that Boohoo's competitor ASOS reported losses last week as shoppers cut back on spending. Although, it's not guaranteed that this also will be the case for Boohoo.