AP2 trade ideas
Daily short setup in Applied Materials, Inc. AMAT has hit a major LVN, as well as a major pitchfork upper outer band. With the Weekly TAM uptrend price projection being exceeded and expiring in 2 weeks, a sell-stop under the recent pivot low (20.65) with a target of 17.81 could produce a nice short play.
Could this be an Ending Diagonal in the making????? We have multiple setups here. On the lower time frames we will be trading within the structure. If it breaks the trendline and consolidates it would be an "abc" correction with targets of $17.00
AMAT Long - Betting on the ReversalAlthough the support level is shown on the weekly chart, also notice the MACD divergence on the daily chart.
Using a soft stop loss of $0.50 and a hard one of $1, I'm looking to make $2.50 per share for a 5:1 reward-to-risk ratio. Not being greedy, the profit target is even lower than $20, although climbing above that isn't unlikely, should the reversal occurs.
Applied Materials - New highs probablyThe weekly chart is in a clear uptrend. After a bearish divergence, price returned to value, and just got oversold. The high volume week warns of a selling climax (after a very short fall).
On the daily chart, there is a double bottom with a false breakout. The doji labeled on the chart has very high volume, a rare occurrence that really adds weight to the doji. The volume indicators point to oversold, as the wave volume is climactic and the Force Index is climbing back into its channel.
Note that both impulses are red, which makes this trade dangerous, however the risk reward is very attractive. One could enter directly on the open (me) or could wait some more time for a blue daily impulse. If the stock gaps down on Monday, I am going to wait for a blue impulse as well.
AMAT (Daily)2003 double top.
Closed at/under range highs, pin bar, 161.8% extension.
Stochastics Bearish divergence.
Applied Materials: Another Bearish Topping Formation-The Share have completed a weekly double top pattern by closing below 19.85.
-RSI momentum bearish breakaout
-Main Rising trend line was taken
-Price is challenging the long term 52-week SMA, where a continuation below it would increase the bearish chances.
-First target at 18.30, second target at 16.70.
Best of Luck , join me at twitter.com
Also at my Facebook page www.thefxchannel.com
My best regards,
Technician
AB=CD pattern completion and a double top We have bearish setup in $AMAT as the stock completed bearish harmonic trading pattern and made double top at the PRZ.
Now we need to see trendline break down to confirm the trend's reversal
AMAT - Channel base and possible outcomesStatus Quo
- Seems that there is a base the price follows and it just reached its resistance.
- RSI, RMI, CCI are all on top of course, so the status quo is the following:
- Current action is done on decent volume
- Tripple bottom was indeed taken as support
Possible outcomes
- up - in case it breaches the channel i would expect a breakout on a high volume. I guess news would be able to cause this, but so far its not that probable. AMAT is told to show sign of being a Momentum stock
- sideways or down to the channels support. It has several times approached the resistance even with volume and wide trading range, but still the price did not go past the orange resistance level. I would suspect either potential trading towards it, then either close to it, then straight down to the support line as indicators are already on top (RMI has a good deal of green there)
Not much to predict the ending price, but channel trading is my favorite. Best of course when spotted earlier, but it still has potential to go up within it.
PS - props to Technician on a great call!
Applied Materials Technical Analysis: Another Bullish BreakoutTechnical Analysis:
The stock remains in a long term bullish breakout mode, after breaking 17.40 key resistance level(check the link below for the long term breakout).
-The price completed a bullish breakout above the 50-days SMA
-The price completed a triple bottom by breaking 19.50 neckline of the pattern
-High Volume levels on breakout
-The price could be heading to resume the bullish trend after the recent pullback towards the key swing low/support level around 18.50.
-First target at the latest swing high at 21.35, followed by my long term target at 23.00 areas(see link below)
-A break back below 18.50 could invalidate this setup
Good Luck, Join me at twitter.com
