Go to the ATH!After the fall of the index, the stock started to make a good convergence. I'm waiting for a renewal of the high. Upside +10%.
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AMAT trade ideas
1/16/22 AMATApplied Materials, Inc. ( NASDAQ:AMAT )
Sector: Producer Manufacturing (Industrial Machinery)
Market Capitalization: 148.382B
Current Price: $167.00
Breakout price: $167.00
Buy Zone (Top/Bottom Range): $158.80-$152.40
Price Target: $196.20-$199.40 (3rd)
Estimated Duration to Target: 146-150d (3rd)
Contract of Interest: $AMAT 6/17/22 210c
Trade price as of publish date: $4.35/contract
Applied Materials Is Fighting HigherTechnology stocks have struggled this week as interest rates rise. However, the selling has mostly targeted classic “growth stocks” like high-multiple software makers. Some of the more cyclical hardware/equipment names have fared better -- including Applied Materials.
AMAT more than doubled between November 2020 and April 2021. It spent the next half a year consolidating those gains. Prices tested and held their 200-day simple moving average (SMA) in October, followed by a new breakout in early November.
Notice how the stock then came down to test the old highs around $145. Buyers quickly stepped in, turning old resistance into new support.
Next, AMAT has made higher lows along its rising 50-day SMA and is now back above its 21-day exponential moving average (EMA).
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$AMAT - Caught at the Supply Zone$AMAT has been trading within this channel for nearly the past year before breaking out to the upside.
It's since come back to retest it's upper resistance, which should now act as support. Given that it holds, we should have a wonderful long entry into a potential 15 point trade!
Retest after breakout | AMAT
Today we will take a look at AMAT. What are the main technical elements can we see here?
- First, we have the 200 days main structure that the price broke on November
- After the breakout, we observed a retest (typical behavior after a structure of this size are broken)
- Now, we are ready to define a level where I will consider that this chart configuration has upside potential towards the 2nd fibo extension or the higher trendline of the channel.
- IF the price makes a new ATH, I will consider that confirmation for the bullish view. Invalidation level will be below the retest
- IF everything goes as expected, I think we may see a movement with a duration of 100 to 150 days towards the target.
What are the odds of this view being right? I would say between 45% to 50%.
Are you trading this setup? No, I'm not trading this setup; currently, I'm exposed to the max amount of open positions my system allows me. However, I think this is a solid scenario from a technical perspective; the expected risk to reward ratio is about 2. As I mentioned before, the odds of this movement happening based on this type of formation are between 45% to 50%. (All you need to create an edge on the market)
What happens if the price never reaches the activation level and keeps falling? You simply cancel your view.
What happens if the prices reach the entry-level and then go straight to my stop loss? You simply absorb a stop. That's why it is essential to manage risk and define a % on each setup you will take; my risk management goes between 1% to 3%.
Thanks for reading! Feel free to share your chars and view them in the comments.
lovely setup 🚀hello traders lets take a look at AMAT today! don't forget to like and follow if you enjoy my analysis!
If we study the recent price action, amat has a history of long consolidation followed by a nice rally! If history repeats itself here we could be looking at 4 months of straight green for AMAT! Remember nothing is guaranteed but the stock market has a history of repeating its own history!
price targets are 183.41-213.53-243.65, goodluck !💘
$AMAT with a Neutral outlook following its earnings #Stocks The PEAD projected a Neutral outlook for $AMAT after a Negative Under reaction following its earnings release placing the stock in drift D with an expected accuracy of 75%.
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