AMAT trade ideas
Semiconductor leader here strong during market turmoil $AMATSo, this chart looks fantastic for continued moves up. We can play with relatively tight stops and see what happens. I'm looking for another breakout of this range and see if there is some follow through.
If $SPY decides to tumble it may hurt this trade, but as it stands it looks fantastic and hasn't had much of a rejection during recent minor selloffs.
AMAT LongAMAT has been stair-stepping higher in a bull trend lately. In my opinion AMAT has been a leader in one of the stronger industry groups within tech (semiconductor equipment). Yesterday it printed an inverted hammer after failing to make a significant push below the previous low on 4/19. This is the line in the sand. Today it opened near those lows but pushed higher and out of the short-term downtrend on impressive volume. It has consistently found buyers at the 20-day EMA (see arrows) - this area has regularly been a great spot to initiate a long. Today represents a low-risk entry with a stop at the previous day's low (red dotted line).
US Stock In Play: $AMAT (Applied Materials Inc)$AMAT dipped -2.45% ($139.54) from last night’s session where major averages pulled back from record highs to close in negative territory during regular trading. $AMAT have established its all time high during the week’s opening at $146 level.
The correction in $AMAT coincide with its price action currently resisted at its upper trendline resistance. At the current junction, $AMAT structural trend channel remains intact. The breach of support at $128 level will reflect the first sign weakness for in its upside momentum in the short term.
$AMAT provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.
AMAT ShortWilliam Alligator : the stock is in a bullish position because the candlesticks are above the Teeth, Lips and Jaw, and the lines are “eating with an open mouth” this indicates that the stock is in a strong uptrend.
RSI : the line is above 70, so the stock is overbought.
Candlestick patterns : there are three white soldiers which are a bullish confirmation.
Overall : it can be interesting to take a sell position on this stock because the stock is currently overbought. Entry price is lower than the current price for assurance and stop loss is set at 5%.
AMAT (D1) - New ATH + Inverse H&S Pattern BreakoutAMAT reached a new (intraday) ATH after breaking above the inverse H&S neckline on 3/24. Yesterday, 3/25, the Inverse H&S neckline resistance now turned support held, and price subsequently bounced convincingly to the upside. Inverse H&S pattern target is around $137.70 with a stop around $114.08, which when the long position was entered during yesterday evening's after-hours extended session, resulted in a Reward-to-Risk ratio of over 3:1. Aside from the immediate long trade, the fundamental outlook for AMAT (in my humble non-advisory & non-licensed opinion) is positive in terms of the intermediate to longer time horizon. Based upon AMAT's 2022 earnings estimates, the stock remains relatively cheap, especially compared to its peers. As such, while I will take SOME profits just below the $137.70 pattern target, I plan on holding AMAT for quite a while longer (assuming no material change in the underlying fundamental backdrop) as a core position although I will most likely continue to take profits at various technical levels and subsequently reloading on technical pullbacks.
---
All previous published disclaimers are hereby incorporated by reference herein.
