Technical Pulse: Applied Materials, Inc September 29, 2022 326

 

Applied Materials, Inc (NASDAQ: AMAT) A potential bullish reversal to the upside  as:   

 

  1. The formation of a bulish engulfing candlestick on 28 September at the confluence of triple bottom and bullish falling wedge support level of 82.50 points towards a bullish upside.
  2. Bullish divergence was also observed where price made a lower low towards the support area, while the Commodity Channel Index (CCI) technical indicator made a higher low and is currently moving up from under the -100 oversold level. This discrepancy points to a bullish upside as momentum is picking up despite the bearish price action.
  3. The price could reach the resistance level at 96.95 which is the 50% Fibonacci retracement level resistance, with the swing high of 111.365 and swing low of 82.530 as points of reference.

 

*Expected timeline of the trade is 13 weeks from the date of report issuance.

 

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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