APPLIED MATERIALS EARNINGS ON SCHEDULE-MARKET LOOKING BEARISH
Applied Materials is scheduled to report its earnings after the market close on Thursday. The closing price of Applied Materials on Wednesday was $47.45 and had lost 1% for the day.
Applied Materials beat market expectations in second quarter results. For the quarter from February to April, Applied Materials had reported EPS of $1.22 on revenue of $4.6 billion. The consensus EPS estimate was $1.13 on revenue of $4.5 billion for the same period.
According to market sources, EPS forecast for the third quarter is $1.17 and revenue forecast is $4.43 billion. Recently, Morgan Stanley downgraded the stock citing oversupply of NAND and DRAM.
On the technical front, the RSI is currently at 46.38% and suggests that the market can move in the downward direction. The %K has crossed the %D from above to the downside at 90.55% and suggests that the market may head downwards. The current market price is below the middle band of the Bollinger bands and is heading downwards. Overall market sentiment seems to be negative.
TRADE SUGGESTION LIMIT SELL AT 47.50 TAKE PROFIT AT 46.90 STOP LOSS AT 47.80