Technical Pulse: Applied Materials, Inc. (NASDAQ: AMAT) April 27, 2023 318

 

Applied Materials, Inc. (NASDAQ: AMAT)  Potential continuation of the bearish momentum with price trading in a downtrend channel following a breakdown of a bearish rising wedge and bearish divergence on the Moving Average Convergence Divergence (MACD).

 

1.      The price has been trading in a downtrend channel following a breakdown of a rising wedge coupled with bearish divergence recorded on the Moving Average Convergence Divergence (MACD) technical indicator, which made a lower high from December last year to February this year while price made a higher high in this period. This could signal for further pullback in the price.

2.      The price could continue to trade lower to retest the support zone at US$90-98,  where the US$98 level is confluent with  a previous horizontal resistance formed in August-November last year, a swing low formed in December last year and a 50% Fibonacci retracement level.

3.      The US$90 level is confluent with a lower horizontal resistance formed in September-November last year and a 61.8% Fibonacci retracement level.

4.      The Fibonacci retracement levels are calculated using a swing high of US$125.62 and swing low of US$70.78.

 

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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