Let’s apply some TA to AMAT – December 8, 2023
This is Scott with your Chart of the Day. I want to take a look at Applied Materials ( NASDAQ: AMAT ).
AMAT ( NASDAQ: AMAT ) is in the Semiconductors and the Semiconductors are looking really good here. It looks like a bit of a break out here. You can see these lines that I drew and was mentioning to Stock Market members yesterday. We had this on our radar yesterday; we had this on our radar last night as a potential setup and breakout for the Semiconductors.
I took a look at AMAT ( NASDAQ: AMAT ) today and AMAT ( NASDAQ: AMAT ) actually didn’t break out but it is trading pretty orderly. So I would like to apply some technical analysis to this chart and give you an idea of some levels that I think could be important over the next couple of days or so.
As we see here, AMAT ( NASDAQ: AMAT ) is just kind of going sideways. It has been going sideways for a bit. We had a nice little pullback to the 200-day, that was supported. It popped back up and now it’s right back in support right above the 50-day moving average.
Now, I typically like to pay attention to stocks when they are near these key moving averages. A lot of times you can see institutions step in and support price there, and it is a good place to put a stop-loss for a position. As you know, a close above, the institutions are supporting it. And you know a close below, chances are they are not supporting it anymore.
This is definitely in an interesting zone here. And if I draw a little downward-sloping trendline from the high in mid-November time, there is clear resistance right down in that area. And then we have a bit of a channel here as well, it is kind of pinching a little bit. Consolidation that is orderly and down to the moving averages, I really like that.
What I want to see from AMAT ( NASDAQ: AMAT ) is a clear break and close above that level, coming on volume. So I think it makes sense to have an alert on Applied Materials ( NASDAQ: AMAT ), maybe just under 149.00, maybe 148.85, something like that, just under that level just to bring it to your attention. So if it does break above today’s high you are alerted to it then you can act on it, if needed. I would want to see some volume through that move above the 8-day exponential.
That is what I would look for here on Applied Materials ( NASDAQ: AMAT ). You can apply this technique to a lot of different Semiconductors right now. As I mentioned, the Semiconductors are definitely an area that I think we should focus on.
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