Shares of Applied Materials (NASDAQ:AMAT) recently fell sharply on earnings. While some investors and talking heads viewed this as a buying opportunity, smart technical traders are sounding the alert. There is a major head-and-shoulder pattern formation that may signal a collapse from the current $50+ price point, to $37.50. A head-and-shoulder pattern is a bearish formation. When the neck-line breaks, the pattern is triggered. Per calculations, $37.50 is target.