Indicators and today's momentum are aligning for a push higher. But will the earnings sour the sentiment?

L’Oreal’s stock is currently trading at around €422.57 a share in the European session. Its share price is down almost 7% YTD and has now fallen below its 200-day moving average. However, we have seen this in the past where the price has fallen below the 200MA before finding a bottom and moving higher. It has also approached a key supportive trendline point, this supportive trendline dates back to November 2022. We can see that buyers have been rushing in as the stock recorded two hammer candlesticks over the past seven trading sessions. This does not guarantee that the price will now continue to rise higher as the earnings could sour the sentiment in the near term. However, as the pattern of higher highs followed by higher lows since November 2022 still seems intact, a positive earnings report might be the catalyst for another leg higher here. So far today the share price is edging higher, trying to climb back above the 200MA. The resistance in focus is the level of €425.40, a break above may see the bulls then target the area of €230- €240. The key support is along the trendline, reading €409.40. A break and close below would certainly encourage selling and may see a decline towards the October lows. The technical indicators are rather mixed, the MACD seems like it may turn positive and the RSI is on the rise as it now reads 45.