Chart of the Day: Applied Materials May Have Corrected More Than Necessary
The stock has been under severe pressure but earnings are coming soon and that may right the ship.
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Applied Materials AMAT has been floundering of late, with pretty heavy money flows out of the stock. The higher volume levels with the stock falling tell us institutional money is flowing out of the stock. Ee can see that with the drop in money flow (bottom pane). Meanwhile, Moving Average Convergence Divergence (MACD) has been on a sell signal from well before the stock started to drop in early July.
Stochastics are oversold here and a momentum bump is probable, but what would really get this bulls going would be a move by the parabolic SAR (dots in the top pane) to move to bullish. That launched the stock a few times earlier in the year.
Notice the candles are purple or pink, bearish on the GoNoGo composite of indicators. However, a move above $215 would get this moving in the bullish direction.
This morning we took advantage of the recent weakness to add to our holdings. Let' see where it goes from here.
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At the time of publication, TheStreet Por Portfolio was long AMAT.
