Emma Asma Cornwall
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Emma Asma Cornwall in Gainers & Losers,

Applied Materials - bullish momentum is temporary

Shares of Applied Materials (AMAT) were rising 5.67% to $29.25 in after-hours trading on Thursday after the company posted better-than-expected 2016 third quarter earnings and strong guidance for the fourth quarter.

The Santa Clara, CA-based company posted adjusted earnings of 50 cents per diluted share, higher than analysts' estimates of 48 cents per share.

Revenue in the third quarter was $2.82 billion, lower than estimates of $2.84 billion.

New orders for the quarter were up 26% year-over-year to $3.66 billion.

For the fourth quarter 2016, Applied Materials expects earnings in the range of 61 cents to 69 cents per diluted share. Analysts are looking for earnings of 48 cents per share in the same period.

Technically, there has been a false breaking of the rising wedge - upwards instead of downwards, I expect bullish momentum to evaporate really soon