Buy Signal Triggered on Applied Materials (AMAT)
12/08/2009 12:01 am EST
Applied Materials (AMAT) - The world's largest maker of wafer fabrication equipment for the semiconductor industry is holding in a bull channel that began in November 2008 at under $8.
On November 9, 2009, at $12.65, I said, "The channel has four major supporting points, the last of which was made on Tuesday [November 3] as prices bounced from the major support at its 200-day moving average.”
"Since the top of the bull channel is at $15, traders may want to try for a quick 17% run to that top.”
"But Standard & Poor's has a five-star (strong buy) rating on AMAT and has chosen it as its “stock of the week” with a 12-month target of $17, so longer-term investors may be interested in purchasing the stock as well."
A break from the recent pattern of tops appears to be developing, with high-volume buying and a stochastic buy signal.
The target is $15 to $16.
By Sam Collins of OptionsZone.com