Sony - technicals suggest further downside is possible. But earnings may shift the entire sentiment in the short-term

Taking a look at Sony ahead of its earnings. Currently, the stock is trading at around $96.07 a share. The trend here has been clearly bullish since October, following the general market sentiment. From a technical outlook, the stock does have support below at $94.31 along the trendline. A fall below the trendline could lead to a further sell-off towards $90-$91. Towards the upside, resistance sits at $97.61 then at $99.45 and then at $100.95. A break above the resistance of $100.95 could pave the route towards $105-$106. However, there are some warning signs that need to be taken into consideration. Firstly, it could be argued that the recent two failed attempts to move higher (12^th & 22^nd Jan), have formed a double top. This can be a bearish signal. Secondly, the technical indicators suggest a similar outlook. The MACD has turned negative and continues to decline and the RSI is no longer positive as it reads 49. It seems like it is following the same direction as the MACD.