LVMH is due to report earnings tomorrow. The luxury goods conglomerate has fallen almost 20% since July.

Taking a look at LVMH as the luxury goods conglomerate is due to report earnings tomorrow. Currently,  its stock is trading at around €714.00 a share. Looking at the daily timeframe, we can see that there has been a pretty significant sell-off (profit-taking) since July, the stock’s value has fallen by almost 20%. The price seems to have created a new support level at €693.45, a break below this level could see an extension lower towards the key support level of €670.25 (highlighted by the lower trendline of the triangle). On the other hand, a positive earnings report may put an end to this recent bearish trend. Therefore, resistance for now sits at €729.70 followed by €732.65. A break above €732.65 could see the price test the trendline resistance with a potential breakout. The resistance along the trendline reads €747.20. If we look over to the technical indicators, they suggest a mixed view. The MACD has turned positive with the MACD line comfortably above the single line, whereas the RSI is negative as it reads 41. Investors and traders should be cautious IF placing any positions as volatility will increase during the earnings release.