Earnings Play: Applied Materials
Jason Lubin November 12, 2020 11:15 AM
Possible pullback before the advance continues.
Today, after market, Applied Materials (AMAT) is expected to report fourth quarter EPS of $1.17 compared to $0.80 last year on revenue of approximately $4.6 billion vs. $3.8 billion in the year before. The company is a global leader in materials engineering solutions for the semiconductor industry and its current analyst consensus rating is 22 buys, 5 holds and 0 sells, according to Bloomberg.
Looking at a daily chart, in logarithmic scale, Applied Material's stock price made a new record high of 75.93 on Monday, November 9th. Last week, price broke out to the upside of what appears to be an ascending triangle pattern that price was holding within since the beginning of September. The RSI is over 65 and retreating from overbought territory. The simple moving averages (SMA) are set-up in a bullish manner, with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA. Price will probably pullback to its breakout level around 65.50 where it will likely find support. If price is supported by 65.50, then traders should look for a retest of the all-time high around 76.00. If price can breakout above 76.00, then the next targets would be 86.50 followed by 92.25. However, if price closes below the 65.50 level, it would be a negative signal. If price falls further then a rebound could occur around 57.00. If price gets below 57.00 it would be a bearish signal, as price would be under its 200-day SMA.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.