It certainly seems as if the company has tried to prepare investors for the worst, but is there any reason to believe AMAT can rally? Better-than-expected earnings can always send a stock higher, but AMAT faces stout technical resistance from its descending 20-week moving average. This trendline has capped the shares in the past, with the stock last topping the moving average in August 2008. Even if the company tops expectations, it will need quite a bit of momentum to force its way through this staunch resistance.

What about potential support if the company misses expectations? There is the stock's 10-week moving average, which has provided a hint of support in the past -- but it isn't the strongest layer of help. We could see the shares rest on the round-number $10 level if needed, this region has provided both support and resistance throughout the past year. If the report is absolutely dismal, we could see AMAT drop to challenge its recent lows in the $8 region; but I think the report will need to be very bad for this to happen.

Technically, it is a mixed bag. It certainly seems as if AMAT could remain locked between its 10- and 20-week moving averages, but this period of stagnation can't last too much longer -- these two trendlines are on a collision course and we could see some sort of resolution in the next few weeks.

As for the short term, it doesn't seem as if the technicals are there to indicate a major jump in either direction following earnings. Of course, I could be wrong -- believe me, it has happened before.