AMAT topping again with MACD diverging downAs AMAT has been moving away from the triple top the MACD has divergence down, prices look like theya re headed to the 49 level. Picked up osme October 25th weekly options the 49 puts at 32 c.
AMAT trade ideas
Short AMAT - Bearish Divergences I see both on the 1D and 4H charts a bearish divergence on the MACD-H and EFI against prices. AMAT is pretty volatile so I suspect the divergence will lead to a move on the 1D chart to the -1 to -2 ATR lines (see the dotted 2 lines). This is because the divergence is strong and this ticker often times hits -1.5 and -2 ATR lines.
DMI shows ADX at the bottom, and -DI will go up, while +DI goes down. I expect ADX to rise along with -DI going up, possibly crossing it, this will then confirm the bearish strength.
I have to monitor the flow of the trade to decide where to get out. The estimate will be at least 49.03, but I set my target to 48.47 on the -2 ATR line, which will probably become -1 ATR when the decline sets in.
The StopLoss is set a bit above the resistance line. 1.5 ATR away
I will decide if I will see if it opens higher so I short from around 52. The other option is to go for a market order before I'm too late to short.
$AMAT Applied Materials heading for All Time HighsEntry level $53.00 = Target price $63.00 = Stop loss $ 51.00
Bullish indicators point to further advances and a break from ascending triangle.
Possible test of all time highs.
P/E ratio 17
Average analysts price target $54 | Overweight
Company profile
Applied Materials, Inc. engages in the provision of materials engineering solutions used to produce new chip and advanced display. It operates through the following segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment includes semiconductor capital equipment for deposition, etch, ion implantation, rapid thermal processing, chemical mechanical planarization, metrology and inspection, and wafer level packaging. The Applied Global Services segment provides solutions to optimize equipment, performance, and productivity. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays, organic light-emitting diodes; coating systems and display technologies for television; personal computers, tablets, smart phones, and consumer-oriented devices. The company was founded on November 10, 1967 and is headquartered in Santa Clara, CA.
Rising Channel with possible rebounceA short position. The rising channel was identified and there were possible retracement before another comeback.
The trade was quick upon realization the risk entered was too big for me at the moment.
To have a nice sleep, the trade was exited upon favorable return.
Entry: 50.04
Exit : 51.06
Applied Materials quietly forming bullish C&HTrading at a very reasonable 16 P/E ratio AMAT maybe does not get the attention it deserves, despite that it has staged a very nice recovery in 2019 and appears to be looking to break to the upside.
Volume has increased nicely and volatility has decreased, we think it is a good value play.
COMPANY PROFILE
Applied Materials, Inc. engages in the provision of materials engineering solutions used to produce new chip and advanced display. It operates through the following segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment includes semiconductor capital equipment for deposition, etch, ion implantation, rapid thermal processing, chemical mechanical planarization, metrology and inspection, and wafer level packaging. The Applied Global Services segment provides solutions to optimize equipment, performance, and productivity. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays, organic light-emitting diodes; coating systems and display technologies for television; personal computers, tablets, smart phones, and consumer-oriented devices. The company was founded on November 10, 1967 and is headquartered in Santa Clara, CA.
THE BEAUTY OF SIMPLE TECHNICAL ANALYSISI am sorry, guys, posting this with a delay, but what a perfect long!
Again and again, the ultimate power and beauty of simple technical analysis!
You don't need anything else. Just the Chart and your Skills!
If you want to learn how trade like me, feel free to pm me!
Applied Materials Inc (AMAT)I have had this chart for a while but I think now I will share it. AMAT still has a little room to run on the upside to major resistance at $51.49 but is getting close to topping out (with minor resistance at $53.93). While the indicators do not signal we are there quite yet, and that there may be a week before AMAT tops, the chart pattern is getting closer to a 'Go'. Of course, we do not trade on anticipation and will only enter the trade when the price action tells us (break of the signal reversal bar on the daily). Yet, we are getting close to a maximum extreme on our 78 bar SMA, and close to equality of our green measured move line. Unless the fundamental dynamic changes, we are getting close.
However, if price were to break above $51.49 this will signal a confirmed uptrend and we will abandon the reversal trade and only trade long.
Happy Trading
NASDAQ:AMAT
Goldman upgrades Applied Materials to conviction buy list.NASDAQ:AMAT has had a nice recovery from the December lows, but still remains 20% below its ATH from March 2018. Caution is needed if intending to jump in here now as this is still dependant on China trade talks having a positive outcome.
The chart is bullish but in that holds the danger of overbought conditions.
Indicators are in a very bullish uptrend of higher highs and lows.
Macd getting quite lofty.
Ma's providing support ,
Golden Pocket needs to hold as support.
$AMAT Price target raised to $60 prior to earnings.An analysts almost doubling their price target on a company one day prior to earnings, may give us a indication of what is in store. AMAT is sitting on quite a critical level and this upgrade had come at a great time. Hopefully the Analyst is anticipating a large beat.
