J Sainsbury - set up is there ahead of earnings, but will the earnings deliver?

Taking a look at J Sainsbury’s stock as it seems to be forming a support base right ahead of its earnings tomorrow. Currently, its stock is trading at around 259p a share and is up 1.7% on the day. The support has been highlighted by the green channel, where a potential base formation is underway. The daily chart shows that the area of 254-256p has been tested three times already, with the most recent test on Friday. Today, the price has bounced off the support once again, highlighting the resilience of this support. With the near-term resistance of 266p now in focus, a positive earnings outcome could lead to a break higher. Perhaps paving the way for 270-280p. However, disappointing earnings could overpower the resilience of this support base as a break below is likely to see a sell-off towards 244-246p. The technical indicators are suggesting that momentum is shifting, setting up for a move higher. However, earnings tend to have more of an influence on price reaction than momentum indicators.