AMAT pushes through Friday's high
Applied Materials Inc. (AMAT) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
AMAT finished Monday at 65.24 surging $1.67 (2.63%), significantly outperforming the Nasdaq 100 (-0.49%). Today's close at 65.24 marks the highest recorded closing price since February 20th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 65.01, Applied Materials confirmed its breakout through the previous session high after trading up to $0.27 above it intraday.
Daily Candlestick Chart (AMAT as at Aug 10, 2020):
Monday's trading range has been $1.66 (2.61%), that's slightly above the last trading month's daily average range of $1.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMAT. Prices continued to consolidate within a tight trading range between 62.60 and 65.28 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 65.25 (R1), the share closed below it after spiking up to 65.28 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on July 23rd, AMAT lost -4.73% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Applied Materials. Out of 210 times, AMAT closed higher 50.00% 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 0.37%.