Trade of the Day - Applied Materials, Inc. (NASDAQ: AMAT)
25 Apr 2024Trade 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.
This counter is available for CFD trading and is available on POEMS US Asian Hours, Singapore’s first platform to provide trading of US Equities during Asian Market opening hours (from 9am SGT). For more information, please click here, or scan below:
About the author
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).
About the author
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).