Applied Materials Navigates A Bearish Trend With Bullish Hopes Ahead Of Q3 Earnings

Applied Materials Inc AMAT is up 39.48% over the past year, and 28.21% year-to-date.

Let’s look at what the charts indicate for the company’s stock ahead of third-quarter earnings, set to be released on Thursday after market hours.

Bearish Trend With Buying Pressure

Applied Materials’ stock is exhibiting a mixed technical picture. The current share price of $201.21 is below its five, 20 and 50-day exponential moving averages, indicating a strongly bearish trend.

Despite this, Applied Materials’ stock is showing some buying pressure, which could signal potential for future bullish movement.

Chart created using Benzinga Pro

The eight-day simple moving average (SMA) of $190.07 suggests a short-term bullish signal.

Applied Materials’ stock is also trading above the 20-day SMA of $199.98 and the 200-day SMA of $191.28, solidifying the bullish case for the stock over the near-term and long-term.

However, the share price is below the 50-day SMA of $221.86, indicating medium-term bearishness, suggesting investors exercise caution.

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator at -8.77 supports a bearish stance, while the Relative Strength Index (RSI) of 47.07 suggests the stock is dribbling against the oversold territory and might be poised for a rebound.

Additionally, the Bollinger Bands range from $168.04 to $247.62 and have the stock trading in their lower bearish band. Thus, this indicator also leans towards a bearish signal.

Overall, while a slight bearish trend co-exists with long-term bullishness, there are indicators suggesting potential upside if buying pressure continues.

Read Also: What’s Going On With Applied Materials Stock?

Applied Materials Analysts See 35% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Applied Materials stock stands at a Buy currently with a price target of $218.26.

Recent analyst ratings from Citigroup, Cantor Fitzgerald and Stifel suggest a 35.24% upside for Applied Materials stock, with an average price target of $268.33.

Wall Street expects the company to report $2.02 in earnings per share and $6.7 billion in revenues for the third quarter.

AMAT Price Action: Applied Materials stock was trading at $198.41 at the time of publication.

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