Legal & General's stock price has found a new support level. With earnings due tomorrow there may be a possibility for a break higher.

Legal & General’s stock currently trading at around 232p a share. We can see that the short-medium term bearish bias persists, however, if we see a break towards the upside and out of the channel we could see a shift in sentiment. Based on the chart, the price has now approached a key resistance zone (upper trendline of the channel). A move above this trendline may spark a shift in sentiment creating a short-term bullish run. The resistance sits at 234p, a close above it would then allow us to look at levels sitting at 238p and then potentially 243p. However, this will be very much dependent on the outcome of the company’s earnings. We can see a small triangle formation within the channel where the price has created a higher low, this is now a new level of support for the potential move. A break below the green trendline (new support: 226p), would suggest that the resistance was overpowering and that we may see a continuation in the downside direction back to levels of 217-220p. The technical indicators are suggesting a neutral stance as the MACD is now flat and the RSI reads 53.