Applied Materials is expected to report an EPS of $1.74 on revenue of $6.15bn.

Applied Materials is due to report earnings tomorrow. It is expected to report an EPS of $1.74 on revenue of $6.15bn, its stock price is currently sitting at $140.09 a share. Simply based on a technical perspective alone, we can see a bullish trend dating back to October last year. We can see a series of higher highs assisted by higher lows, therefore, there is support at $133.53 but a move lower back towards the trendline ($131.25) cannot be ruled out. In that scenario, we would expect the trend to bounce off the trendline and continue higher. Though this is of course not guaranteed. It would be of higher risk to outline resistance points prior to the earnings release, especially if further downside is still possible. However, a positive report may see a bounce higher. Hence, resistance sits at $142.52. A break above could see the price head towards $145.49. Based on the technical indicators, the MACD is strongly negative but the RSI is in a neutral stance as it reads 45.