Applied Materials earnings preview

Can AMAT surge to record highs, or will the uptrend reverse?

Uptrend 1

On Thursday, Applied Materials (AMAT), the global leader in materials engineering solutions for the semiconductor industry,  is expected to post 3Q EPS of $0.94 compared to $0.74 last year on sales of $4.2B vs $3.6B a year ago.

The stock has an expected move of 5.2% up or down and dropped 4.4% after the last earnings release. The stock has 22 buys, 5 holds and 0 sell recommendations according to Bloomberg Consensus.

Technically speaking, the stock remains in an uptrend inside a bullish trend channel. The 50-day moving average (in blue) is acting as support and can be used as a trailing stop near $61.70. As long as the uptrend remains active, look for a test of record highs at the $69.40 level. A break below the 50-day moving average would signal the end of the bullish trend and a call to test supports of $59.50 and 56.25 in extension.

Source: GAIN Capital, TradingView

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