Trade of the Day
Applied Materials, Inc. (NASDAQ: AMAT)
(Current Price: US$196.06) – TECHNICAL SELL
Sell price: US$196.06 Stop loss: US$205.00 (-4.56%)
Take profit 1: US$177.00 (+9.72%) Take profit 2: US$165.00 (+15.84%)
(1): Applied Materials, Inc. broke down a trading range between US$198-213 recently, with the price doing a retest thereafter. This provides a bearish signal as the prior range support is likely to act as resistance ahead.
(2): The Moving Average Convergence Divergence (MACD) & Relative Strength Index (RSI) technical indicators support the bearish view with decreasing momentum.
We expect the price to pull back further towards Take profit level 1 at US$177.00 to retest a previous swing high resistance level in January 2024.
(3): The price could then extend its bearish momentum towards Take profit level 2 at US$165.00 to retest a previous range support level in January 2024, confluent with an uptrend support line.
Expected timeline of the trade is 1-8 weeks from the date of report issuance.
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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).
