Carbonite $CARB reported better than expected earnings, but fell sharply. Let's first look at a summary of the earnings report from Nasdaq.com:Carbonite (CARB) Tops Q2 Earnings EstimatesCarbonite (CARB) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 19.15%. A quarter ago, it was expected that this cloud computing company would pos t earnings of $0.37 per share when it actually produced earnings of $0.44, delivering a surprise of 18.92%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Carbonite, which belongs to the Zacks Computer - Services industry, posted revenues of $135.05 million for the quarter ended June 2019, missing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $77.73 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.CARB Weekly Chart(click to enlarge)Bearish Reaction:- After the Q2 earnings report, the market is selling CARB in after-hour trading.- CARB was bearish since September 2018 after pushing to $43. After falling to $22.50, price consolidated for the most part in 2019.- However, despite the stronger-than expected earnings report, price is continuing this bearish correction. - Price is cracking $20. - The $20.50-$21 support is key. This is right around the 200-week simple moving average (SMA).- This area also involves the 2018-low. This is a critical support indeed.- If price does indeed break and stay under $20, there is potential downside to the $15.45-$16.25 area. - This area could prove to be critical support after being a critical resistance for years since CARB's IPO.- If price starts to find resistance around $22.50-$23, I would be more confident of the bearish scenario-