Q1'13 earnings for AOL will be released on Wednesday, May 8, 2013. The last earnings, where the company reported quarterly growth after many years, had led to a lot of positive sentiment about the stock. Last month, Barclay had upgraded the stock and even UBS had initiated a coverage on the stock. Though the unusual income from sale of licenses last year may have had an impact on the sentiment and the fundamentals, the stock appears to be attractive at current levels. The trailing P/E is 3.36 and the PEG is only 0.87. Despite more than 52% rise in the last 52 weeks, the price to sales and price to book ratios are 1.33 and 1.36 respectively. Recently, $39 has been a resistance, and the stock is presently trying to find support at the 50 DMA of $37.39. The 200 DMA around $35 is likely to be another strong support. Thus, the stock is approaching a zone of strong support and the range is getting narrow. If the company can deliver again on the earnings front, then the recent highs (~$44) may be challenged pretty quickly. At present, the 3 month average (1.6 million shares) is much higher than the 10 day average of 1.1 million. The volumes are likely to pick up before the earnings and if the price also rises, then the momentum will build pretty fast. The key to crossing the highs is positive news flow. AOL has negotiated patent infringement lawsuits in the past tactfully, and scores over other big players on this front who have been getting into one tangle after another. The latest to join the list are Facebook (FB), LinkedIn (LNKD), Novell (NOVL), Broadvision (BVSN) and Jive Software who have been sued by a subsidiary of Document Security System (NYSE:DSS) for patent infringements. DSS is likely gain tremendously from this lawsuit. .For AOL, earnings will be the next trigger.