Several technology stocks have formed bullish triangles as they consolidate from the last few months’ of volatility. These include , and – all playing out to the upside.
Today another appears on the list: Semiconductor-equipment firm Applied Materials.
AMAT has been trapped below its 200-day simple moving average (SMA) since mid-April. It’s also started making higher lows this month, resulting in an ascending triangle with the potential for a breakout to the upside.
The stock is also eclipsing its April highs now. That will likely trigger some alerts for momentum followers.
AMAT reported decent earnings on May 14. Given its central role in the chip space, it’s very much a play on semiconductors overall. If you’re a believer in the industry and not too worried about Trump and the Huawei threat, then you might want to check out AMAT as it attempts to clear this triangle.