Here’s the level to watch on $AMAT – August 29, 2023
This is Scott with your Chart of the Day. There are a ton of charts to look at today, but this is just one that I want to bring to your attention really quickly. It is from a semiconductor company called Applied Materials ( NASDAQ: AMAT ).
We know this one over at StockMarketMentor.com, this is an old favorite. It is setting up right now, in my opinion, and definitely should have your attention. If I zoom in here a little bit, you can see the red line, which is the 50-day moving average.
We have had a nice bounce over the last couple of days, right around that 50-day moving average, where the buyers are coming back in to support the stock. Even when it did drop down a little bit, eventually the buyers did come back and fixed this broken chart.
Today we have a nice bounce just off that 50-day moving average and it brought us to a pretty clear resistance line from back here in July. I can draw this downward-sloping trendline from the high in July, and we see a pretty clear level of resistance, right there, right there, right there, and right there.
So what I want to see from AMAT ( NASDAQ: AMAT ) is a break, through that level, coming on higher than average volume. So I think it makes sense to have an alert on AMAT ( NASDAQ: AMAT ) right around that 151.00 level, maybe 151.40 if you want to be precise.
Look to see if this stock can break out of this short base of consolidation, and do it on higher than average volume. So that is a setup that I am looking at tonight, and I think the 151.40 level is pretty key here on this chart.
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