Expected to report an EPS of $1.9 on revenue of $6.48bn

Some mixed signals here from Applied Materials. Its shares have broken out of the channel towards the upside last Friday but have fallen back into it in yesterday’s session. Closing at $180.28 a share. Therefore, the resistance here is along the upper trendline of the channel once again, reading $183.35. A break above it would first need to overcome Monday’s high of $188.20 before any further upside is to be seen. Towards the downside, the support reads $177.13 (yesterday’s low) then $167.49 and then $160.96. A move below $160.96 would see its shares back at the lower end of the channel. Looking at the technical indicators, the MACD is still positive and rising but the RSI has dropped off a little as it reads 64. Prior to that, the RSI was suggesting that the stock is somewhat overbought. Additionally, it is also trading at its all-time highs, hence, caution should remain ahead of the earnings report. AMAT is expected to report an EPS of $1.9 on revenue of $6.48bn.