Atmel Looks To Break Higher as Analysts Up Estimates (ATML)

In 2005, Atmel (ATML) lost $32.9 million on sales of $1.7 billion, the net loss due mostly to restructuring and cost cutting expenses. However, with strong earnings guidance and a recent string of analyst consensus estimate boosts, Atmel appears to be chugging along.

On the other hand, the share price has yet to reflect the positive earnings picture because in late May, the company rejected a potential takeover bid from RDG Capital LLC that was worth a cool $2.7 billion.

Yet the stock chart is really starting to shape up, with a classic double bottom occurring in the weeks after Atmel's rejected takeover offer of $5.50. Within the past few days, Atmel has begun to test its 50 day moving average, which coincidentally is around the $5.00 resistance level. Close attention should be paid to this because a breakout could lead to Atmel shares testing their 52-week highs.