AMAT MACD histogram about to cross upAMAT also has a RSI divergence. The tech sector is making a comeback and AMAT has the potential to rally even more.
AMAT trade ideas
Applied Materials Inc. | Chart & Forecast SummaryKey Indicators on Trade Set Up in General
1. Push Set Up
2. Range Set up
3. Break & Retest Set Up
Active Sessions on Relevant Range & Elemented Probabilities;
* Asian(Ranging) - London(Upwards) - NYC(Downwards)
* Weekend Crypto Session
# Trend | Time Frame Conductive | Weekly Time Frame
- General Trend
- Measurement on Session
* Support & Resistance
* Trade Area | Focus & Motion Ahead
# Position & Risk Reward | Daily Time Frame
- Measurement on Session
* Retracement | 0.5 & 0.618
* Extension | 0.786 & 1
Conclusion | Trade Plan Execution & Risk Management on Demand;
Overall Consensus | Neutral
AMAT Applied Materials Options Ahead of EarningsAnalyzing the options chain and the chart patterns of AMAT Applied Materials prior to the earnings report this week,
I would consider purchasing the 195usd strike price Calls with
an expiration date of 2024-9-20,
for a premium of approximately $15.05.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
AMAT is BearishPrice was in a strong uptrend, however a bearish divergence appeared on the daily time frame, and now seems to be playing out too. Previous higher low is broken a lower low is printed instead, now price will move up a bit to define a lower high before journeying downwards again as per Dow theory. Targets are mentioned on the chart.
AMAT - The Flight ContinuesYes, the stock is highly valued, but it's hard not to believe in further highs: Fiboclouds remain aligned and compacted, providing support in the 60', H4, D, and W timeframes. This movement suggests a continued breakout towards the first target.
If this projection is confirmed and a partial realization occurs at the first target, the stop loss should be moved from its initial position to the same line where the position was entered.
This way, the journey towards the final target will proceed with reduced risk of losses and the preservation of the partial gains achieved so far.
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AMAT Consolidation breakI like AMAT for calls at 235 if it pulls back and holds with the anticipation of a 237.90 breakout. It has failed this level for three days, and if/when it does break AMAT should see a nice move up.
My favorite scenario is a premarket gap over 237.90. This allows an entry with little resistance and a sign of strength.
Risking $1 here for potential $5-10 move.
I have multi time frame confluence on this trade and I like what I see from a candle perspective on the daily time chart.
Applied Materials, Inc. (AMAT) Surges to New Heights.Applied Materials, Inc. (NASDAQ: AMAT) is experiencing a significant upward momentum, closing at $237.65 with a robust gain of 3.34% in the latest trading session. The technical indicators and price action suggest that AMAT is positioned at a critical juncture, with potential for further upward movement or a short-term pullback.
The latest session closed with a bullish marubozu, indicating solid buying pressure throughout the day, often seen as a continuation signal.
The stock gapped up from the previous close, suggesting strong overnight sentiment and a possible continuation of the upward trend.
AMAT is trading well above the Ichimoku cloud, indicating a strong bullish trend. The cloud provides dynamic support levels around the $220 mark.
Currently at 72.76, the RSI indicates that AMAT is in overbought territory. Historically, RSI levels above 70 can signal a potential pullback or consolidation phase.
The MACD level of 5.64 is bullish, with the MACD line above the signal line, suggesting positive momentum.
All key moving averages (10, 20, 50, 100, and 200-day) are aligned in a bullish configuration with the price above each, reinforcing the strong upward trend.
The latest session saw a volume of 5.57M shares, higher than the 30-day average of 4.97M, indicating strong investor interest. Volume spikes often accompany significant price movements and can foreshadow continued momentum.
The Momentum (10) at 18.60 and the MACD suggest a continuation of the current bullish trend, though caution is warranted due to the overbought RSI.
AMAT has consistently outperformed its earnings estimates, with the latest EPS surprise of +11.84% for Q1 2024. Revenue growth also showed positive surprises in recent quarters, supporting the bullish outlook.
The company's cash flow from operating activities is strong, despite some volatility. The recent quarter saw a significant free cash flow of $1.14B, suggesting healthy liquidity and operational efficiency.
Given the current technical setup and momentum, AMAT could potentially test higher resistance levels.
Bullish Target: If the bullish momentum continues, the next resistance is likely around the psychological $250 level. This target is based on the extension of the current bullish channel and Fibonacci retracement levels.
Bearish Scenario: Should there be a pullback, support is expected around $220, aligning with the upper boundary of the Ichimoku cloud and the 20-day EMA.
Long Position:
Entry Point: Consider going long if AMAT breaks above $240 with high volume, suggesting a continuation of the bullish trend.
Stop Loss: Set a stop loss around $230 to protect against downside risk.
Take Profit: Target the $250 level for potential gains.
Short Position:
Entry Point: Short positions could be considered if AMAT shows signs of reversal around $240-$245, particularly if accompanied by declining volume and bearish candlestick patterns.
Stop Loss: Set a stop loss at $245 to limit losses in case of a bullish continuation.
Take Profit: Look for a correction towards $220, aligning with the Ichimoku cloud support.
Applied Materials, Inc. presents a compelling technical picture with strong bullish indicators but is currently in overbought territory. Traders should watch for key levels around $240 for potential breakout or reversal signals. The strategic use of stop losses and attention to volume trends will be crucial in navigating the next moves for AMAT.
AMAT Shorting scenariosA little project for a short bias on the AMAT with 3 potential scenarios in mind. A fall from the first pink rectangle, or from inside it if the top edge becomes resistance. Second scenario is resistance met at the white curve. 3rd scenario is similar but at the purple curve.
These should only be considered if the earnings don't push this with a stellar gap higher. If the earnings report is decent, but no buying enthusiasm and/or appetite transpires from the price action, any signs of shorting opportunities and/or setups should be carefully considered and analyzed with the preferred lens, approach, method or other sources.
As usual, all elements are envisioned potential support/resistance zones/forces.
AMAT TO $230 before AugustAMAT is alongside, NVDA, ADI, AMD, and SMH. All are pretty bullish in my view. I'm not saying that you should go buy all these lol. just check em out, I prefer SMH as a main.
AMAT had 3 red days that look like intentional accumulation. Followed by green, that is our bottom.
AMAT $230 is my price target. All opinion do your own research.
PS, I'm a charts guy, I don't even know the name of this company (because its simply a sympathy play for NVDA while that goes to $1600). I watch data and wait, NFA
AMAT Applied Materials Options Ahead of EarningsAnalyzing the options chain and the chart patterns of AMAT Applied Materials prior to the earnings report this week,
I would consider purchasing the 210usd strike price Puts with
an expiration date of 2024-9-20,
for a premium of approximately $16.95.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Waiting for these buy-zonesHoping to get a shot on these buy-zones.
Around 140 is my first fib retracement zone and will be my first entry when it gets there.
When it hits the second fib retracement zone at around 120 I will buy some more.
Will be a longterm hold, just want to get it at a good price.
Applied Materials Surges on Upbeat AI-Boosted ForecastApplied Materials Inc. (NASDAQ: NASDAQ:AMAT ) is emerging as a frontrunner, riding high on a wave of optimism following its recent forecast announcement. The company's shares surged an impressive 13% in premarket trading on Friday, fueled by a promising outlook fueled by robust demand for AI-enabled chips.
Analyzing the Surge:
The semiconductor equipment supplier's bullish forecast for the second quarter, coupled with a strong performance in the first quarter, has ignited investor enthusiasm. Analysts and investors alike are startled by the company's well-diversified portfolio, which positions it for further gains amidst a backdrop of multiple technology inflections.
AI-Enabled Chips Driving Growth:
Applied Materials' ( NASDAQ:AMAT ) upbeat outlook is largely attributed to the surge in demand from customers seeking to capitalize on AI technology. As industries increasingly pivot towards artificial intelligence for enhanced efficiency and productivity, the need for specialized chips tailored for AI applications has skyrocketed. Applied Materials ( NASDAQ:AMAT ) finds itself in the conduit of this burgeoning market, poised to capitalize on the lucrative opportunities presented by AI-driven innovations.
Diversification and Technological Inflections:
Analysts at J.P. Morgan underscore Applied Materials' ( NASDAQ:AMAT ) strategic positioning to benefit from multiple upcoming technology inflections. With a diverse portfolio catering to various electronics end-markets, including smartphones and personal computers, the company is well-positioned to outperform its peers in the wafer fab equipment (WFE) sector over the coming years.
Strong Financial Performance:
Applied Materials' ( NASDAQ:AMAT ) stellar financial performance further reinforces investor confidence. The company's forecast for second-quarter revenue, ranging from $6.5 billion to $6.9 billion, surpassed market expectations. Additionally, adjusted profit per share is anticipated to range from $1.79 to $2.15, indicative of robust earnings growth.
Expanding Market Opportunities:
One particularly promising area highlighted by analysts is the exponential growth expected in high-bandwidth memory (HBM) packaging revenues. Applied Materials ( NASDAQ:AMAT ) anticipates HBM packaging revenues to quadruple compared to the previous year, underscoring the burgeoning demand for specialized memory solutions tailored for high-performance computing applications.
Analyst Sentiment and Investor Response:
The overwhelmingly positive response from analysts is reflected in the flurry of rating upgrades and upward revisions in price targets. At least four analysts have raised their ratings, with eight adjusting their price targets upwards, according to LSEG data. The company's stock, currently valued at 22.77 times its one-year forward earnings, presents an attractive investment opportunity compared to the industry average.
Conclusion:
Applied Materials' ( NASDAQ:AMAT ) bullish forecast and promising outlook underscore its position as a key player in the semiconductor industry. With a strategic focus on AI-enabled chips, diversified portfolio, and strong financial performance, the company is primed for sustained growth in the dynamic landscape of semiconductor technology. As investors eagerly await further developments, Applied Materials ( NASDAQ:AMAT ) stands poised to capitalize on the transformative potential of AI-driven innovations, driving value for shareholders and stakeholders alike.
AMAT rocketed out of earnings Short then LongAMAT on the 15 minute chart jumped 13 % from earnings and is now in the $212 range. The 0.5
fib level is 202.65. I have 3 call options striking $190 for July purchased only a day ago.
Trade plan. I will sell two calls and collect profit. I am buying a put option striking $204
expiring on 2/23/24 expecting a fall to the retracement line. I will close the put option
when price gets under $204, Porfits will be used to buy another AMAT call option for July
this time for a strike of $210 to lower cost.
AMAT Ascending channel breakoutReasons for bullish bias:
- Price moving in ascending channel
- Entry is at 0.382 fib retracement
- Safe entry will be above 179.35(HH breakout)
- TP till projection
Entry Level(buy limit): 167.47
Stop Loss Level: 146.92
Take Profit Level 1: 188.02
Take Profit Level 2: 200.57
