The Setup (Bias): I am taking a LONG bias on Applied Materials, Inc. (AMAT) on the weekly timeframe.
The "Why" (Technical Reasons): 1. Major Resistance Breakout: The price has forcefully broken out above the recent swing high, cleanly slicing through the established resistance level at $375.15 with a strong, full-bodied green weekly candle.
2. Textbook Stair-Step Trend: This breakout confirms a highly robust macro uptrend. Looking historically, the chart demonstrates a perfect pattern of breaking resistance levels and flipping them into solid support floors (as seen clearly at the $270.29 and $334.74 levels). This structural behavior indicates buyers are consistently in control.
Trade Plan (Entry & Exits): * Entry: Momentum traders can look for entries near the current market price of $417.04 to ride the immediate upside. A more conservative, lower-risk entry would involve placing limit orders to catch a potential pullback/retest of the $375.15 to $385.00 zone, waiting for that old ceiling to prove itself as a new floor.
Take Profit (Target): With the stock entering fresh price discovery and showing excellent relative strength, the next major psychological targets are $450.00, followed by the $500.00 milestone.
Stop Loss: Placed safely below the previous structural support step, around $325.00. A weekly close below the $334.74 base would indicate a breakdown in the current stair-step structure and invalidate the immediate bullish thesis.
Duration: Because this analysis is built on a 1-Week chart, this is a medium-to-longer-term swing trade designed to play out over the coming weeks to months.
The "Why" (Technical Reasons): 1. Major Resistance Breakout: The price has forcefully broken out above the recent swing high, cleanly slicing through the established resistance level at $375.15 with a strong, full-bodied green weekly candle.
2. Textbook Stair-Step Trend: This breakout confirms a highly robust macro uptrend. Looking historically, the chart demonstrates a perfect pattern of breaking resistance levels and flipping them into solid support floors (as seen clearly at the $270.29 and $334.74 levels). This structural behavior indicates buyers are consistently in control.
Trade Plan (Entry & Exits): * Entry: Momentum traders can look for entries near the current market price of $417.04 to ride the immediate upside. A more conservative, lower-risk entry would involve placing limit orders to catch a potential pullback/retest of the $375.15 to $385.00 zone, waiting for that old ceiling to prove itself as a new floor.
Take Profit (Target): With the stock entering fresh price discovery and showing excellent relative strength, the next major psychological targets are $450.00, followed by the $500.00 milestone.
Stop Loss: Placed safely below the previous structural support step, around $325.00. A weekly close below the $334.74 base would indicate a breakdown in the current stair-step structure and invalidate the immediate bullish thesis.
Duration: Because this analysis is built on a 1-Week chart, this is a medium-to-longer-term swing trade designed to play out over the coming weeks to months.
Trade closed: target reached
Target already achieved.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.