We got a mixed earnings report from iRobot $IRBT after the close of the 7/23 session. Here's a summary of the Q2 earnings report:Home Robot Maker iRobot Says U.S.-China Trade War Hurting Its BusinessRoomba vacuum cleaner maker iRobot (IRBT) late Tuesday beat Wall Street's target for earnings in the second quarter, but came up short on sales. It also guided to weak sales ahead. The iRobot earnings news sent IRBT stock down sharply in extended trading. The Bedford, Mass.-based company earned 25 cents a share on sales of $260.2 million in the June quarter. Analysts expected iRobot earnings of 3 cents a share on sales of $268 million. In the year-earlier period, iRobot earned 37 cents a share on sales of $226.3 million. U.S. tariffs on its Chinese-made products are hurting iRobot's sales and earnings prospects in the domestic market, Chief Executive Colin Angle said in a news release. "The direct and indirect impacts of the ongoing U.S.-China trade war and the recently implemented 25% tariffs are likely to constrain U.S. market segment growth in the second half of the year below our expectations at the start of 2019," Angle said.IRobot Cuts Full-Year Sales, Earnings TargetsThe company slashed its full-year targets for sales and earnings. It now expects to earn $2.78 a share on sales of $1.23 billion, based on the midpoint of its guidance. It previously guided to earnings of $3.28 a share on sales of $1.3 billion. IRobot stock crashed 17%, near 74, in after-hours trading on the stock market today. During the regular session, IRBT stock fell 3% to 89.63. "Even as we operate in a higher tariff environment in the U.S., 2019 is shaping up to be another successful year of double-digit revenue growth and impressive global segment leadership," Angle said. In May, iRobot introduced its latest flagship home robots. They are the Roomba S9 vacuums and Braava Jet M6 mops.From Investor's Business DailyIRBT Daily Chart(click to enlarge)Bearish Breakout to New Low on the Year- Note that price rallied in 2019 only to pullback by May. Still, price since May has been consolidating above $85, which is higher than the 2019-low around $78. - After the reaction to the earnings report however, price will likely open the 7/24 session around $73, below the previous 2019 low. - Note that the RSI in the daily chart remained under 60 and price held under the cluster of moving averages even before this dip. - The market was already bearish and this dip accelerated the bearish action.- Now, IRBT is going to be right around a key support around the $70-$73 area. This area involves a rising support trendline and the 200-week SMA.- Then, if price breaks below $70, I would expect support around $60.- While I expect support at theses levels, I think we should limit the bullish outlook to $80 in the short-term because it looks like IRBT is in a consolidation/correction mode.- I would consider $90 to be a very aggressive bullish outlook, and $80 to be more viable. - I have some dry powder at both $70 and $60, but don't want to commit much exposure until some time passes for IRBT to complete its consolidation cycle. IRBT Weekly Chart(click to enlarge)