This looks like a great short set up to me. Tagging R3 on monthly and 2.272 fib ext. Williams R indicating sell. Most likely we see this tank on ER today.
11-11-2016
AMAT @ 28.28 – Expected to test support zone before resuming 13-month uptrend
AMAT rallied 13 months to reach 31.07 (September 22, 2016 high) before consolidating. The pullback so far has been benign, down 11% to 27.56 (October 13, 2016 low). As the momentum indicator remains neutral, the stock is expected to consolidate further towards the 26.00-27.00...
AMAT is a stock that has been mentioned in our trading community a fair few times. It has been trending well but hesitating around the $30 round number.
Support is just over $1 away so a tighter trailing stop may be required to lock in profits for the Dynamic Traders who have positions in this.
AMAT is in a strong uptrend. At the moment there is a bearish divergence for a possible correction but i'm expecting more upside. A breakout on rising trendline could be a strong retrace. Possible target on chart.
Huge potential every day is left on the table. ie profit
Manage your trades in small portions in line with your risk management rules.
This is an up trend yet there are and will be many opportunities to short this stock.
AMAT has hit a major LVN, as well as a major pitchfork upper outer band. With the Weekly TAM uptrend price projection being exceeded and expiring in 2 weeks, a sell-stop under the recent pivot low (20.65) with a target of 17.81 could produce a nice short play.
