AMAT closes lower for the 2nd day in a row
Applied Materials Inc. (AMAT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AMAT ended the week 4.52% higher at 54.39 after losing $0.63 (-1.15%) today, significantly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 54.85, the market confirmed its breakout through the previous session low after trading up to $1.13 below it intraday.
Daily Candlestick Chart (AMAT as at May 22, 2020):
Friday's trading range has been $1.45 (2.64%), that's below the last trading month's daily average range of $2.24. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMAT.
After trading as low as 53.72 during the day, the share found support at the 200-day moving average at 54.25. The last time this happened on May 13, 2019, AMAT gained 2.35% on the following trading day.
Though 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 Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Applied Materials. Out of 378 times, AMAT closed higher 54.76% 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 54.76% with an average market move of 1.12%.