Technical Analysis Ahead Of Levi Strauss Earnings: Could This Be A Turning Point?

Levi Strauss & Co. LEVI shares are trading slightly lower Wednesday as the stock has fallen below a channel support line. The company is scheduled to report earnings after the bell. With positive earnings, the stock may bounce back and trade within the channel once again.

Levi Strauss was down 3.12% at $20.35 at time of publication.

Levi Strauss Daily Chart Analysis

• The stock has been trading in a downward trending channel for the past couple of months and has now fallen below support in the channel. This could be a bearish sign if the stock is unable to recover the channel’s support level.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been trending lower for the past few months and sits at 29. This is slightly in the oversold area and shows that the stock is seeing more selling pressure than buying pressure.

What’s Next For Levi Strauss?

The company has been falling for the past few months, but since breaking below the channel support, it has started falling at an even steeper rate.

Bulls are looking to see strong earnings and for the stock to climb back above the channel support level. They then want to see higher lows begin to form and for the stock to be able to break above the channel resistance, possibly starting a bullish trend.

Bearish traders are looking to see the stock stay below the channel support and for the RSI to remain in the oversold region.

Photo: Courtesy of Hannah Cossey on Flickr