AMAT uptrend in progressThis is one of our favourite stocks. Most Dynamic Traders have multiple positions, whic are in good profit. I have been buying into AMAT since summer last year and it paid off quite well, although I could have chosen a more aggressive compounding method. Nevertheless, price is currently dealing above $40 and triggered me into another position. I am looking to add further once we see more strength towards $50 and ideally beyond.
I am not going to chase the market but rather wait patiently for another signal. Nothing more can be done.
1AMAT trade ideas
Expected to test support zone before resuming 13-month uptrend11-11-2016
AMAT @ 28.28 – Expected to test support zone before resuming 13-month uptrend
AMAT rallied 13 months to reach 31.07 (September 22, 2016 high) before consolidating. The pullback so far has been benign, down 11% to 27.56 (October 13, 2016 low). As the momentum indicator remains neutral, the stock is expected to consolidate further towards the 26.00-27.00 support zone. Beneath lies the key retracement of 38.2% of the 15.44/31.07 upswing at 25.23. As far as the key support area holds, scope remains for resuming the year-long trend back to 31.07. An upside break above the latter would confirm the bulls are back in control for new highs.
However, a downside break below the 25.23 area would suggest more downside towards the 23.40 area (50% of the 15.44/31.07 upswing).
Outlook:
Daily: neutral
Weekly: bullish
Monthly: bullish
Price is at the round number resistanceAMAT is a stock that has been mentioned in our trading community a fair few times. It has been trending well but hesitating around the $30 round number.
Support is just over $1 away so a tighter trailing stop may be required to lock in profits for the Dynamic Traders who have positions in this.
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.