AMAT rises to highest close since December 4, 2018
Applied Materials Inc. (AMAT) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AMAT ended the week 3.2% higher at 34.78 after edging higher $0.02 (0.06%) today on low volume, slightly outperforming the Nasdaq 100 (-0.3%). Today's close at 34.78 marks the highest recorded closing price since December 4, 2018. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AMAT as at Jan 11, 2019):
Friday's trading range has been $1.12 (3.25%), that's below the last trading month's daily average range of $1.44. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMAT.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on November 30, 2018, AMAT actually gained 2.84% on the following trading day.
Unable to break through the key technical resistance level at 34.84 (R1), the stock closed below it after spiking up to 35.31 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Applied Materials. Out of 114 times, AMAT closed higher 52.63% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.28% with an average market move of 1.40%.