Shares of Levi Strauss (LEVI) - Get Report are getting hammered on Wednesday, down 12.3% to $20.75 after the company's disappointing earnings report.

It's Levi's second earnings report as a public company and it's not being as well-received as its fiscal first-quarter results in April.

Second-quarter earnings came in at 7 cents per share, down 65% year-over-year. However, that was tied to Levi's IPO costs earlier in the year. Adjusted earnings came in at 17 cents per share, ahead of Wall Street expectations calling for 15 cents per share.

Revenue of $1.31 billion grew 5.4% year-over-year and also came in ahead of expectations.

Despite beating on adjusted earnings and growing sales, many investors view it as a mixed quarter for the apparel maker. It doesn't help that retail as a whole has had a tough run, too.

Let's look at the charts to see where Levi stock may find some buyers.

Trading Levi Stock

Daily chart of Levi stock.

Beside biotech, retail is the worst-performing sector on Wednesday with the SPDR Select Retail ETF (XRT) - Get Report down about 50 basis points. For its part, VF Corp.  (VFC) - Get Report isn't even budging on the day, flat vs. the beating that Levi stock is taking.

However, Levi stock is now teetering on a key area of support. The $20.50 level has buoyed the name over the last few months, with one exception in late May. While the rest of the market was under pressure, Levi also succumbed to the selling pressure, falling below $19. One day later, though, shares reversed and Levi reclaimed the $20.50 mark.

Just above this level now, bulls need to see this mark hold.

All that said, the price action in Levi may not be as bad as it seems. The stock put together a six-day win streak and a 13% rally to start the month. At current levels, Levi stock has essentially erased that rally. One could argue that shares were a bit too hot coming into the report after such a move. 

On the downside, though, Levi stock lost the $22 level. That level had a confluence of moving average support with the 8-day, 20-day and 50-day moving averages all near this area. On a rally, we need to see if Levi can reclaim this area. If it can, it may begin to fill the gap (blue box) back up toward $23.

Below $20.50 opens the door to $19.50. Keep it simple, as the levels are laid out in a relatively clean manner for Levi stock investors. 

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.