Technology stocks for 2018 #3 (AMAT)Sector: Technology
Industry: Semiconductor Equipment & Materials
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries worldwide. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells a range of manufacturing equipment used to fabricate semiconductor chips or integrated circuits.
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The concept behind trend following is for example: this stock make 67% the last year and is yet trending.
But for this reason now your PE-Ratio: 21.17 Is high, for some investors but this is not my decision
All the ideas in this series of publications called "Technology stocks for 2018" Are Trend Following.
No price patterns in this series. Do it easy, No technical analysis
Trend Following
AMAT trade ideas
AMAT - Apr.'18 Exp. Put Vertical Credit SpreadTrade details:
47/42 Put Vertical Credit Spread @ $0.98
Prob. of Max Profit = 69.49%
Prob. of Max Loss = 13.53%
Break-even @ $46.02
114 D.T.E.
Trade plan:
Similar bias as NVDA trade (check it out below).
Entry by oversold + support/resistance analysis
Expecting $48.00 support level to survive possible test before earnings report in Feb.'18 for an uptrend continuation before Apr.'18 expiration.
Using longer duration for some more premium + allow for adjustment if trade goes very wrong.
Expecting spread to expire worthless but will take early profit + place new trade with same bias around earnings if IV swells premium up enough to give an edge.
ATOM Bollinger BandThis is Bollinger band indicator. Default value is set at length 20 with 1 Standard Deviation (Narrow)
Light blue region indicate votality of price movement between Upper and Lower Band
Line chart is represent price movement. Decision to buy/sell is as following :-
1 - Potential Buy - Price Line turned Green crossed above upper Band.
2 - Potential Sell - Price Line turned Red crossed below lower Band.
Note :- Price breakout from narrow band normally result in rally.
The longer duration of narrow band will result in stronger rally after breakout
Best use with "EMA Indicators with BUY sell Signal"
EMA Trend with Turtle Buy/Sell SignalCombine 3 EMA Indicators with BUY/SELL Signal based on Turtle Indicator
1 - Combine EMA20 (Thin red line), EMA50 (Green thicker line) and EMA200 (Thickest Purple lines)
2 - Buy signal based on default 20 Days Highest High resistance
3 - Sell signal based on default 10 Days Lowest Low support
Input
- Short EMA (20), Mid EMA (50) and Long EMA (200)
- Resistance (20) = 20 Days Highest High line
- Support (10) = 10 Days Lowest Low line
Force Index HistogramThe Force Index (By Alexander Elder)is a price-and-volume oscillator that helps technical analysts determines if a stock's trend is strengthening or weakening. It is calculated based on the raw Force Index (difference between today's close and yesterday's close times today's volume) and smoothing it with an exponential moving average.
Signals
If the Force index is above zero (GREEN) it signals that the bulls are in control. Negative (RED) Force index signals that the bears are in control. If the bar near zero index or whipsaws around zero, it signals that neither side has control and no strong trend exists.
Go long if the Force index is GREEN and there is a bullish divergence.
Go short if the Force index is RED and there is a bearish divergence.
Time To "Short" APPLIED MATERIALS Is Coming Closer & Closer.Applied Materials Ins (NASDAQ: AMAT) is giving signs for Loss Of Buyer's Momentum at the top as per TTC Breakdown Formation . The 54.50 Zone is very critical for now to hold the breakdown. If price manages to sustain below this Critical TTC Zone , we can see buyers losing control to the sellers in the markets.
For Short-term targets, Trader should eye on 53.20 Zone . Then 52.20 is the next support. For Swing Traders, 48.50 zone is Very Critical. Below which we can see a good amount of selling.
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries worldwide. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.