AMAT (Daily)2003 double top.
Closed at/under range highs, pin bar, 161.8% extension.
Stochastics Bearish divergence.
AMAT trade ideas
Applied Materials: Another Bearish Topping Formation-The Share have completed a weekly double top pattern by closing below 19.85.
-RSI momentum bearish breakaout
-Main Rising trend line was taken
-Price is challenging the long term 52-week SMA, where a continuation below it would increase the bearish chances.
-First target at 18.30, second target at 16.70.
Best of Luck , join me at twitter.com
Also at my Facebook page www.thefxchannel.com
My best regards,
Technician
AB=CD pattern completion and a double top We have bearish setup in $AMAT as the stock completed bearish harmonic trading pattern and made double top at the PRZ.
Now we need to see trendline break down to confirm the trend's reversal
AMAT - Channel base and possible outcomesStatus Quo
- Seems that there is a base the price follows and it just reached its resistance.
- RSI, RMI, CCI are all on top of course, so the status quo is the following:
- Current action is done on decent volume
- Tripple bottom was indeed taken as support
Possible outcomes
- up - in case it breaches the channel i would expect a breakout on a high volume. I guess news would be able to cause this, but so far its not that probable. AMAT is told to show sign of being a Momentum stock
- sideways or down to the channels support. It has several times approached the resistance even with volume and wide trading range, but still the price did not go past the orange resistance level. I would suspect either potential trading towards it, then either close to it, then straight down to the support line as indicators are already on top (RMI has a good deal of green there)
Not much to predict the ending price, but channel trading is my favorite. Best of course when spotted earlier, but it still has potential to go up within it.
PS - props to Technician on a great call!
Applied Materials Technical Analysis: Another Bullish BreakoutTechnical Analysis:
The stock remains in a long term bullish breakout mode, after breaking 17.40 key resistance level(check the link below for the long term breakout).
-The price completed a bullish breakout above the 50-days SMA
-The price completed a triple bottom by breaking 19.50 neckline of the pattern
-High Volume levels on breakout
-The price could be heading to resume the bullish trend after the recent pullback towards the key swing low/support level around 18.50.
-First target at the latest swing high at 21.35, followed by my long term target at 23.00 areas(see link below)
-A break back below 18.50 could invalidate this setup
Good Luck, Join me at twitter.com
