The American retailer is expected to report an EPS of $1.68 on revenue of $18.47bn

Taking a look at Lowe’s stock as the American retailer is expected to report earnings tomorrow Currently, its stock is trading at around $232.51 a share. Looking at the weekly chart, we can see how vital the 200-day moving average is for certain stocks. Even though the ascending trendline (green) was offering support, the share price did not hesitate to force its way below it. Retracing all the way to the 200MA as a test of new support, before bouncing higher and back above the supportive trendline resuming its trend. After clearly breaking and closing above the resistance of $226.99 last week, this sets the investors up for a potential push above the resistance of $237.20 (red oval) after the earnings. However, weaker-than-expected numbers may see the price of the retailer fall back towards its supportive trendline and maybe even lower. However, it is too early to judge the severity of any downside until after the report and guidance are released. Towards the upside, resistance reads $237.20 then $238.29 and then $240.71. A break and close above these levels would be a bullish indication and may then see the price extend towards $250 a share. Towards the downside, the support reads $221.90 then $211.89 (along the trendline). The earnings would have to be really poor for a huge sell-off here forcing the price below the trendline. So unless it is broken, it is the key support here. Looking at the technical indicators, they suggest that the momentum is present. The MACD is on the rise and so is the RSI as it reads 61. Hence, the technical outlook is bullish for Lowe’s, but as we have seen many times in the past, sentiment can quickly do a U-turn dependent on a company’s earnings.