NEW YORK (TheStreet) -- The technical picture for Owens Corning  (OC - Get Report) is looking good ahead of the release of its earnings report on Wednesday.

Following its most recent report in April, the stock popped intraday and then closed on its low, setting the stage for a decline into May that took it back down to the February and March lows.

This support held, and the stock was able to regain some positive momentum and recapture its 50-day moving average. The relative strength index and Chaikin money flow moved above their centerlines, reflecting positive price and money flow momentum, and moving average convergence/divergence made a bullish crossover, reflecting the change in the short-term trend. A series of higher lows were established above a rising trend line and below horizontal resistance.

This price action formed a well-defined "cup and handle" pattern on the chart, with the rim line in the $42.75 area. That resistance is being retested this week. Once again, the relative strength index and Chaikin money flow have crossed above their centerlines and 21-period signal averages. Moving average convergence/divergence is making another bullish crossover, and this time it is breaking above a downtrend line in place since the beginning of the year.

The cup and handle pattern projects a target price that is measured from the bottom of the cup to the rim line. It suggests a move that takes out the May top and makes a new all-time high.

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