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.

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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

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