AMAT closes above its opening price after recovering from early selling pressure
Applied Materials Inc. (AMAT) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
AMAT finished the week -0.67% lower at 41.23 after losing $0.42 (-1.01%) today, underperforming the Nasdaq 100 (-0.42%). Trading up to $0.40 lower after the open, Applied Materials managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AMAT as at Jun 14, 2019):
Friday's trading range has been $0.93 (2.27%), that's below the last trading month's daily average range of $1.16. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMAT.
After trading as low as 40.56 during the day, the market found support at the 100-day moving average at 40.64. The last time this happened on May 23rd, AMAT actually lost -1.10% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for Applied Materials. Out of 27 times, AMAT closed higher 51.85% 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 59.26% with an average market move of 0.75%.